"...no faith in 202 finding a separate source gas 400m away, there is no evidence to support that claim (201 & 202 would need to be separated by a fault)."
Well 202 is not targeting a "separate gas source". It is going into the current gas field, which hosts gas in the B-18b reservoir. This well is to assist in recovery of the remaining 51 Bcf of gas reserves. Each well is expected to produce 10-13 Bcf from the reservoir over its lifetime. It is a production well pure and simple.
Giant1, you asked for my assessment of the reserve report, well try a summary. 51 Bcf 2P gas reserves in the producing Sorochynska gas field. 5 wells required to recover all 51 Bcf of gas in the field. Each well expected to produce 10-13 Bcf over its lifetime. NPV of each well with both a 10% discount rate and current 201 production data, is US$41 million. 5 wells = US$205 million. To get to this stage - $60 million dollar (CAPEX= wells + gas plant).
This whole "separate gas tank" mentioned in the report is the fault that separates the B-18b gas pool in the field. The west part of the field (where well #469 was) hosted limited gas reserves, which would make a well there uneconomic. The east part of the field (where well #110 was) was known to host 13 Bcf of 2P reserves, certified by RISC and Moyes. Well 201 was used to tap these reserves. Now after evaluation the pool has been certified to host 2P reserves of 56 Bcf of which 51 Bcf is remaining. 5 wells are needed to recover this gas.
As for the B-24/25, lets leave the next update to do the talking. I put my faith in RISC and Moyes evaluation of this reservoir and not anything else. There's a reason it hosts contingent resources and not prospective resources.
HOG Price at posting:
17.5¢ Sentiment: None Disclosure: Held
