The news from Al Jumd-1 is excellent - although still to be verified by electric wireline logs, there are several good things to consider in the announcement.
The "...estimated 20-25% porosities. * Oil shows, resistivity log response and gas compositions recorded over this interval suggest potentially lighter oil than equivalent zones at the recent Sarha discovery" - is really very good news (if borne out by logs and testing), because a lighter grade of oil is would be easier to produce and flow at higher rates than the Sarha heavier oil.
The excellent porosity indicates high quality reservoirs.
The lack of an oil water contact means that oil is more likely to be found deeper in the well - but there may not be deeper oil of course.
The thickness of the zones encountered (108m in total so far in this well), is much more than at Sarha - suggesting considerably greater oil production potential and reserves.
The shallow depth of the discoveries makes this well commercially very attractive, and full of potential IMO.
This well is a significant distance (+25km)from the previous discoveries by Oilex in Oman, which means oil is relativley widespread in the block.
Also we have one further well in the current Oman drilling program (Umq-1), so fingers crossed, for possibly more good news later.
I fully expect the de-rampers to denigrate this discovery in every way they can think of - so what, they are wrong.
OEX Price at posting:
28.9¢ Sentiment: Buy Disclosure: Held
