kunde 1 produces oil and gas, so its good to see they mention the oil..
They have done some extensive testing for the last month, and now it into the horizontal..
a few very good words from ed, whom is way less bullish than the likes of agentm!!
Edgein - 25 Jul'07 - 10:36 - 47615 of 47647
Don't get too hung up on reserves and timing of reserves, the companies may make a prospective resource announcement at any time. That is still a long way from proven reserves, but an indication of scale all the same. You will be aware if its a good discovery long before any P2 reserve report is released. We'll get to hear about each well as drilled.
What a muted response to a good news release. We have only drilled 1500ft of the 4000ft horizontal section. Bottom hole vertical depth to be 15,500, I make that the Edwards. Scaleyman you are bang on the nose. Small flare = low gas production and low pressures, large flare = high production rate and high pressures. 10ft flare is ok, 40ft flare is very good, I would like to see that sort of response from an unloaded flow tested well. Definitely a sign that they have hit a good pressure gas interval there imo. Increasing the mud weight is also very positive that they are encountering high formation pressure in the horizontal well. Hopefully the high mud weight won't damage the porosity but we are mainly talking carbonates that will be much more robust than friable sandstones. I'm looking forward to see this one flow tested now, 4000ft is a very respectable length for a production well, almost as ambitious as the 5000ft planned for SL-2. We are lacking information as to the extent of the fluorescence and the gas shows, but a good start that the pressure is linked to gas and possible liquids. Hardly surprising though as this is an appraisal to the gas and condensate producing Kunde-1. I'll keep my fingers crossed that we get a 40ft flare when flow tested.
Bang on Xong.
Regards, Ed.
Edgein - 25 Jul'07 - 10:49 - 47619 of 47647
Saf,
Agree with you 100%, they will take their time on this well. The major ;o) will want as much information as possible from this well and as you point out money is not an issue. Same with TCEI, they are looking for as much as they can gleam from this appraisal well, its been a long time coming to get this appraisal. They are going to get information right through the Austins past the comparable shows in SL-1 and into the upper Edwards. That will give a most of information and they can then recompare and contrast with K-1 and SL-1. SL-1 was also cored in the carbonates and I'm sure that wasn't the only testing they did at the time. The 19th of July, hmm did that correspond with 40ft flares? possibly lol. We need a few spies on the ground in Texas. ;o). If they can conclusively prove that these are from the one reservoir we'll no doubt get some more hints. They have told us this morning that they have hit gas and possible liquids and not at modest flowing pressure (significant increase in mud weight and 40ft flare). Draw no conclusions as suggested by the announcement, not for widows and orphans etc, but don't rule out the other possibility that she could be a beauty. ;o).
This is not a Glantal, Glantal was a CBM play, or looking for reservoirs surround CBM. This is a traditional gas play with a proven well at K-1, and SL-1 that has potential payable gas at the same target horizon. That is way more prospectivity than a CMB play that has no producing wells in the near vicinity and needs much more work to come close to proven gas.
Regards, Ed.
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