1. Fluid phases From report 7 "Production testing to resolve fluid phase uncertainty and reservoir productivity"
My interpretation of "fluid phase uncertainty" is that it refers to uncertainty in the gas-condensate ratio, not to water content or GWC, as 'fluid' refers to hydrocarbon fluid, while water is an impurity to hydrocarbon fluid. Determining the behaviour of gas-condensate reserviour involves its share of difficulties. Perhaps this could also explain the lengthy campaign at Evans Shaol recently..?
Maybe I'm just an optimist..but fluid phase uncertainty says condensate to me (there has been references in the past to potential condensate at ES and Blackwood).
2. Cut cores Report 6 "Cut core from 3,226m to 3,283mMDRT (recovered 60m)".
The mathematicians here were quite confused by this one. 57m or 60m. I think Report 7 clarifies.. "side wall coring program complete". The cores were side cores at locations between 3226 m and 3283, not from 3226 m to 3283 m.
side wall coring: http://www.glossary.oilfield.slb.com/en/Terms.aspx?LookIn=term%20name&filter=sidewall%20core
3. Risk/reward and hating on JH I'm feeling optimistic about the risk/reward at this point, but that isn't to say the risk isn't high. A few meomites (and non-holders) here love to hate JH and MEO management about 'another duster' etc. but I believe this is somewhat unfair. MEO's job is to negotiate farm-outs and they have done an exceptional job with that. The geology will determine success, not good or bad management. (Yes, Gurame was a disaster, but even there MEO announced their intentions of going it alone and investors were free to come along for ride (train wreck) - if you remember there was a big sell off on the going it alone announcement. Those were the people who assessed the situation and voted against the change in strategy. Anyway, I digress). You can blame management for any bad farm-out deals, fine, but IMO if you are blaming permeability on JH, then maybe you hold too many shares for your risk tolerance or don't appreciate the risks of O&G exploration..
4. ENI's next move My prediction is that Blackwood East will be drilled before any more Heron wells. Between ES, 3D seismic and deeper GWC, ENI know a lot more than they are letting on. Time will tell..
5. Thanks Thanks to daz, agent, mrmosh, etc. for the discussion points, opinions, etc. posted here for our collective benefit.
6. Evans Shoal some good info on Evans Shoal here for those interested http://engineerspress.com/pdf/IJC/2012-02/10%20_IJC-121210_.pdf
DYOR & Merry Xmas Cheers ben
MEO Price at posting:
5.0¢ Sentiment: LT Buy Disclosure: Held
