If it is being extracted viably from Cuban oil fields that are in shallow water off Cuba I assume it will be able to extracted from Block 9 with a decent margin. AP for all his alleged faults seems to think that by drilling horizontally this well will be able to potentially flow. Other posters have also provided many examples of where else in the world this is happening. The geology would seem to be favourable with the porosity or 'vuginess' of the rock.
Immediate term questions -
- Is there further to fall if the next drill is heavy oil too? I want to buy but will this provide an even better opportunity in the next few months? - What is the cost of each horizontal drill likely to be? Is anyone able to forget their 'bias' and provide a rough idea based on this current drill. - How does MAY fund the drilling required to get this oil to market? I assume we will be able to truck it to the nearby oil refinery at very little cost and that the drilling can be done at smaller scale and increase over time to its potential. - Is there a chance that the company will need to raise capital or possibly do a sell down of its stake to Sherritt or someone of the like to avoid this?
Longer term questions -
- I would think that in the future oil will still be needed, even if it is a long transition. I would argue that known in place reserves with lesser exploration cost risk, and a scaleable approach to delivery will be the most likely to be exploited. Companies are not going to spend billions on long term large scale opportunities if they can't predict the demand. What other nearby countries have refineries capable of taking the heavier oils?
MAY Price at posting:
6.4¢ Sentiment: Hold Disclosure: Held
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