MAY 0.00% 2.1¢ melbana energy limited

Alameda-3, page-306

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    For reference (since there has been some debate/confusion on this subject):

    The Petroleum Quality Institute of America has published a simple table which explains API (American Petroleum Institute) standards:

    https://hotcopper.com.au/data/attachments/5531/5531453-8ad7cb54ec3744c3977e7f58866aca00.jpg

    There is a slight overlap between each category, as depicted in the chart below:

    https://hotcopper.com.au/data/attachments/5531/5531488-879bee22d03da21162d8da1b3fbd6f40.jpg

    That said, "Medium Crude" is generally taken to be from 22.3 to 31.1 API.

    Marti - the target of Alameda-3 (to commence shortly) has been observed previously to have oils in the 22.5 to 24.0 range, with observations post-drill above this (there was some research published in 2005 or thereabouts which suggested it was higher).

    Accordingly, if A3 can successfully navigate its way into Marti (on the correct side of the fault line, where the pressure is higher), the API is expected to be of "Medium Crude" grade. Based on the previous pressures observed it should flow unassisted to the surface.

    And for clarify - the "Heavy Crude" confirmed in A2 (Units 1A through 4) is of similar quality to that which is found in shallow structures nearby, and is recoverable via horizontal wells:

    https://hotcopper.com.au/data/attachments/5531/5531505-14c9902d52239f5ee6991a655574c27b.jpg

    Note that the distance from the kick-off point (start of the bend) to the horizontal (flat section) is usually around 400 metres (based on others seen in the region). The company intentionally drilled to the top of the updip on Unit 3 at a point 500 metres from the vertical. Coincidence? I think not. AP knows what he is doing.

    Regards
    Kit
 
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