We can hope the gas MEO spoke of in Report-7 was more than the remains of a deckhands lunch. Surely MEO learned from the "kick" at A1.
The installation of the 7" liner was all but complete almost a week ago. If they were installing the liner, they obviously knew they were production testing, so they have already had a reasonable amount of time to design a test program and mobilise equipment, if required.
Having a look at Report-7 again, and again, I think the answer is right before us.
"Production testing to resolve fluid phase uncertainty and reservoir productivity".
Key objectives of the production test:
1 - Resolve reservoir productivity. Why To test for fresh water production? I know we have a few boat people passing through, but these reservoirs are only good for one thing. Producing hydrocarbons!
2 - Resolve fluid phase uncertainty. Surely this is not an academic exercise. Current school of thought is that the reservoir temperature is too high to retain fluids, however, papers back to 1992 suggest there is the prospect of liquids being expelled from the Malita Graben. From what I recall, this is where the 500mmboe of liquids from Bayu are sourced. So, why the uncertainty of fluid phase. Eni could just have a lot of hot salty water, which would be great for cooking pasta, but it seems as though we have wet gas, and perhaps why MEO is being cautious.
Nothing that shareholders can do now was we are in TH, and we are all on edge after Heron last year as it also encountered a lot of gas.
All the best to all of us.
Love, The 227th Pope
MEO Price at posting:
5.0¢ Sentiment: LT Buy Disclosure: Held
