Ann: Block 9 Alameda 3 Appraisal Update (Alameda reservoir), page-244

Hi Kangaroos67,

Re your comment "It's square on AP's shoulders though, they stuffed the engineering up on this."

A couple of comments in the release have me worried that the right local hands-on drilling expertise may not have been engaged on the engineering side to the degree that they could have been - particularly considering the very positive results from Alameda-1?

"We will incorporate local and international expert advice as to how to remedy such reservoir responses ..."

"At this stage the company is unsure whether this is due to formation damage related to the formation of an emulsion i.e. an oil-drill mud reaction, or a rock-drill mud reaction."

"The forward plan is now to suspend the well ... and build an optimum remediation plan based upon all new data, previous drilling experience and international and local expert knowledge."

Considering the amount of vertical and horizontal drilling, over many years, in very similar fractured carbonate reservoir rocks in the Northern Cuban Oil Belt and the results from Alameda-1 (movable oil and high pressures) issues relating to formation of emulsions and particularly rock-drill mud reactions could imply that the right local hands on drilling expertise may not have been engaged / employed to the degree that they should have been. There are wells that have been drilled to similar and deeper depths than the Alameda in the Northern Cuban Oil Belt so would expect similar temperatures & pressures to have been readily encountered together with poorer quality oil.

Considering the results from Alameda-1, I'm very surprised that the Alameda reservoir didn't flow with perforations even with the time the Alameda section may have been open pre casing.

Solutions to remedy the potential issues will take some time to design & then test so I'm not expecting anything soon for a Marti / Alameda retest etc.

Onto development of the Amistad Unit 1B - lets hope the well engineering builds in the right local hands-on drilling expertise!

GLTAH
Cheers
VOGC