<20 API actually often sells for higher prices than higher API oil. Cuba has a large demand for it for power generation. This makes it likely to be one of the most economical heavy crude plays. Horizontal drilling in Colombia produced ~200k barrels a day of 11-14 API oil. Cuba will be far cheaper to operate. The highly fractured geology will make it easier than most fields to extract from using eor methods.
IVZ sounded more like 88E on their first drill. Some luminescence but nothing suggesting a discovery of anything approaching commercial levels. It served it's purpose though, I sold it at at ~27c and 32c after buying at ~10 and 18 respectively.
I'm going to stick with the likely >4bn boip net to MAY. Recovery factors for heavy crude using Secondary recovery methods range between 10-25%. These cruises usually have a natural flow of less than 20 bopd. The 750 bopd estimate from unit 3 suggests the highly fractured geology and increased depth of this discovery will perform at the higher end of this range.
This equates to potential reserves over 500m net to MAY in time.
MAY Price at posting:
6.6¢ Sentiment: Buy Disclosure: Held
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