what did they say in their last announcment about KF?
Let me help you; they said the testing was forthcoming. Not completed, not underway, just forthcoming.
Maybe they havent even commenced testing because of the timing of the discovery prior to Christmas?
Maybe HC should not be relied on as a source for announcing oil discoveries by companies?
They have told you something which should set your hair on fire though.
You see those crazies over at BCC and VIL getting excited about their finds and prospects? Well consider this. The P50 estimate based on the intersected sands was 77BCF, with a high side of 284BCF. This is based on the intersected zones of 30,3m.
I found one of my Dads old maths text books that talks about imperial or british units (whatever they are), anyway, the point is the 30.3 metre interval they hit is equivalent to 99ft, lets call it a 100foot interval.
Now the interesting aspect of the well is that they have found an additional 350feet of potential gas reservoir - whether they are sands or shales who knows as yet. DJ points to the fact that this may result in the contingent resource looking more like the OGIP, which had a P50 of 82BCF and P10 of ~800BCF.
To put it in context, we are possibly looking at a 450foot gas zone in the well. Production techniques have come a long way over the year, and I think it is quite possible that a lot of the marginal zones can be enhanced with fraccing and short laterals.
You cannot get too far ahead of yourself until you have carried out testing on the various zones, which they have indicated is forthcoming.
Even more interesting is the possibility of their being more gas bearing rock below the current TD. Getting to this might be a challenge as they weigh up going deeper and testig what they have currently got and this remains to be seen what they will do here.
So anyway, back to your point. Yes it would have been good that they told us what was going on in more detail, but I think they have communicated to the market what has happened and is going to happen, so their responsibilities have been met and nothing has changed from the last announcement.
Dont get me wrong, I would also love more detail, but if we all have to suffer, we suffer together : )
Cheers,
SF
MEL Price at posting:
60.5¢ Sentiment: Buy Disclosure: Held
