Ann: Block 9 Alameda 2 Increase in Net Pay, page-432

I don't like bearing the bearer of bad news...

However, I have not seen anyone point out the blisteringly obvious point... This calculation from VOGC considers a "production test with an economic flow rate". (Post #: 69188544,)

Amistad 1a not only failed to have an economic flow rate, it failed to have any measurable flow rate at all: e.g the ASX announcement said: "not at a measurable rate" source: 5 Jul 2023, ASX:MAY, Alameda 2 First Production Results https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02683339-3A621181?access_token=83ff96335c2d45a094df02a206a39ff4

The reason(s) why this is so important is because without a flow rate, first of all we can't say for certain what the more accurate volumetric analysis concludes in regards to what the most realistic quantity of oil is.

And secondly, enhanced oil recovery in Cuba is likely to be more expensive than in other western countries, I'm not even convinced there is enough of that equipment readily available in Cuba to do the job. And... I am also not convinced that it would be economically viable to do EOR in Cuba (and then sell for what Sherritt last sold their oil for {from Cuba}).

Thirdly, if the oil requires enhanced oil recovery, and sometime later we do get the equipment for enhanced oil recovery, unfortunately, the estimates for "operating cost" per barrel will go up significantly. This will once again require a re-estimation of the value AUD$/bo.


source: VOGC, 06/08/2320:38Post #: 69188544, adapted to include "with economic flow rate" highlighted in red.

I believe Amistad Unit 3's drill stem test has been completed, and we have not had any news (bad sign). A flare tells me they possibly hit a gas pocket, but might not have hit oil. Keep in mind, this is not the same location they hit in Alameda-1, it is a deviation to the exploration trajectory of Alameda-1.


source: https://energyeducation.ca/encyclopedia/Oil_and_gas_reservoir An anticline oil and gas reservoir.