Trout has a very good chance of geological success. The structure has already had production so they know the quality of the reservoir sand and that there is oil there. The integrity of the seal is proven . However the target resources for trout are smaller than the targeted lower O sands . Cutting and removing a section of casing setting a plug and sidetracking will all add costs. Gas can form a gas cap in a structure so some of the attic may have a gas cap. It is good that they can rescue the well but it will be more costly and probably have less and possibly more gassy production than the very high oil production from the lower O sands that all had expected from the originally planned well .
The seal was breached but the oil went somewhere. I wonder if MEL sold some pre announcement. Doubt it , they probably thought a knockout result was likely too.
MEL Price at posting:
2.6¢ Sentiment: Hold Disclosure: Held
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