STX 0.00% 20.0¢ strike energy limited

Analyst Update, page-272

  1. 1,231 Posts.
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    Well done Toots.

    Now lets look forward to the next problems. At this instant in time there are independent 2P estimates of the amount of gas in both WE and SE. These estimates are based on the results obtained from well results and the best estimates of the areal extents of the gas bearing structures in both WE and SE. As these estimates are bankable they are made using a recipe developed by the gas industry and are necessarily conservative. As such, one can guarantee, with a very high degree of confidence, that they will change as more wells are drilled and as more information is gained on areal extents.

    Now lets assume that the gas compositions of WE and SE are the same. My thinking is that all this tells us is that they originated from the
    same pool of gas. It does not tell us if WE and SE gas were later separated by faulting.

    Now lets assume that the gas compositions are different. Currently, It does not tell us by how much the SE gas pool extends into WE or, alternatively how much of the WE gas pool extends into SE.

    We now come to the question of arial extents. If I remember correctly you are/were a strong supporter of SE 3D, even before SE1 was drilled.
    Even though we could argue about this until the cows come home it seems apparent to me that SE 3D will have to be done at some time.
    When? This is a question, as is the question of how WE and SE gas is divvied up, is best left up to the experts.


 
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