killanoola south-1

With the Killanoola South well about to spud in PRL 13, I thought I would post this part of an old report from Beach Petroleum:

http://www.pir.sa.gov.au/__data/assets/pdf_file/0020/111863/www_2009_Year_2_PRL_013_Annual_Report,_Beach_Petroleum.pdf

"Killanoola-1 was spudded on 19 April 1998. Twelve (12) barrels of gas-cut oil was recovered from a drillstem test of a 1.5 metre pay interval within the Sawpit Sandstone. The well was sidetracked in order to intersect the oil saturated interval in an updip position. Killanoola-1 DW-1 kicked off on 27 April 1998 and intersected the Sawpit Sandstone 23.5 metres shallower than at Killanoola-1. A drillstem test of the interval resulted in the recovery of 11 barrels of gas-cut, 35 degree oil with no water, from an interpreted 6.5 metre net pay interval. An extended production test was conducted in January - February 1999 in order to gain an assessment of reservoir drive and recoverable reserves. Approximately 1000 barrels of oil were produced during the test period with a stabilised off-take rate of 25-30 BOPD and a water cut of 10-15 percent. The EPT was terminated due to low oil price, high operating costs and wax problems at the surface."

With a high oil price and relatively cheap operating costs signalled, a successful well should add a few cents to the SP.

From ADE's report:

"Given proven oil in the system, this is a relatively low risk exploration well -with P50 unrisked recoverable resources of 250k bbls (and P10 of 2.7M bbls)"

Just for starters:

250,000 bbls x $100 = $25,000,000

divided by 350,000,000 shares = about 7 cps