Ann: Bauer-12 success with 2P Reserves Addition , page-15

re: Ann: BPT: Bauer-12 success with 2P Reserv... Further to my above post, after re-reading today's announcement, I have concluded that Reg must be trying to tell the market that PEL 91 will allow them to keep up the high rate of current production for the foreseeable future (of course there is probably many more plausible reasons). The highlighted part is particularly important. Some brokers see DLS as not having the ability to replenish its reserves. Clearly Reg, the MD of BPT believes otherwise (I am sure Brad Lingo also thinks so).

I was going through a slightly dated DLS announcement regarding Bauer's potential. In particular, the possible north easterly extension of the field which DLS believes join the Basham oil discovery. Basically, DLS believes that the Basham discovery holds 3.5mmbo OIP. Now that is only 700k mbo (at 20% recovery), however, DLS also calculates that the high prognosis could be 15mmbo OIP, or 3mmbo recoverable (at a 20% recovery rate). This also does not include the Arno-1 discovery which, as I posted a while back, may also be an extension of the Bauer field. To be clear, many more appraisal and development wells are required to prove up the possible resources. However, if they succeed, it could dramatically increase the life of the field, since all the production facilities are just 2-3 kms away.

Basham

Lastly, from today's announcement, the Bauer field image does not include Bauer North-1, which had already proved that the field extends a lot further than initially thought. Strange to simply leave it off. (the map to the right is from a recent DLS quarterly).