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Ann: Borba Prospective Resource and Operations Update, page-215

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Mickey73

2 Posts.

18/02/21

11:24

Post #: 51111566
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Originally posted by Profit Prophet: ↑

Another sleepless night as i was mulling over Borba being referred to as "Dempsey on Steroids" ( i couldn't let it go).

The first thing to note from yesterdays announcement is that 1 TCF of gas is a huge prize. There is approximately 1,000,000 MMBtu in 1BCF. There is 1,000 BCF in a TCF. Using $A5/MMBtu, a TCF of gas is worth approximately $5 billion. At a 33.33% interest as a very rough guide this is worth approx $1.6 to $1.7 billion to XST.

Back to the Borba comment "Dempsey on Steroids". I went back to an announcement in 2014 on Dempsey (refer screen shot below) which is titled "Exploration well on Dempsey prospect targets 1 TCF of gas". So from this it sounded like the Dempsey 1 well was targetting 1 TCF of gas unrisked (prospective resource size). The Good Oil conference presentation from 2014 also has "Dempsey prospect - 1+ TCF gas exploration well" which again sounds like the Dempsey 1 well had an unrisked prospective resource target of 1+ TCF, which is confusing (refer screen shot). But it sounds like the 1+ TCF was a total prospective resource size covering the Dempsey well and also the other wells that may need to drilled on trend/within the structural closure (the prospect as a whole).

So the reference to the Borba Prospect being "Dempsey on Steroids" was in relation to the seismic covering the Borba 1-7 well and the other look alike Borba targets/wells (Borba prospect) being significantly more anomolous than the seismic covering the Dempsey 1 well and the structural closure (Dempsey prospect).

The reference that was made to the multi TCF potential for Borba at the 2018 Good Oil Conference therefore is in relation to the Borba 1-7 well and also the other targets that may need to be drilled in the structural closure covered by the seismic (the Borba prospect) as a whole.

So in a nutshell they are going to have to drill a few holes at Borba to get to magical TCF and beyond (multi TCF). As previously mentioned a TCF is a huge prize to XST, potentially worth approx A$1.6 to $1.7 billion.

The 37 BCF prospective resource for XST for the Borba 1-7 well is still a very big prize to XST, potentially worth approx A$185m or roughly 7 cents to the shareprice. Bring on the drilling can't wait!!

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thank you PP
I always enjoy your informative posts

XST Price at posting: 1.3¢ Sentiment: Hold Disclosure: Held
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Ann: Borba Prospective Resource and Operations Update, page-215

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