The first well was a re-entry of an earlier discovery in the 70's & it found oil or whatever's been left of it. The initial production was'nt higher, despite reporting shows over a few metres (can't remember how much it was).
They've managed apprx 60 bopd since cleanup. This block holds about 16 mmbbls of oil, its not something that will b a gusher, as the field has produced for quite some time & could have a lot of 'left-over stuff', hence the need for either artificial lift or Pumps.
As for the current well, its drilled on an anticline where there's better closure & HC's migrate up-dip, so IMO it has better chances of being a success & perhaps higher initial flowrate as well.
IMO, it's common sense, if the last well downdip is producing oil, why can't the one at a better drill location!!
The shows that they've reported at casing depths, are a clear sign of leakage via joints from below. The lithology here is heavily jointed & the basement has a plethora of thrust faults giving the tectonic & onshore HC accumulation history of the area.
Its a classic textbook case of a structural trap & has a very chance of success, given the indications till date.
All the best.
cheers
ERH Price at posting:
18.2¢ Sentiment: Buy Disclosure: Held
