Ann: Neon Drilling Update, page-17

Austin,
yes that's the Cretaceous (Maastrichtian) sand they r talking about. If it's above the OWC then they can core it & get fluid samples & mayb test it depending on the results. Need to establish if the oil type is same, ie light sweet 39 API crude etc.

They already have the flowtest data (fluid quality, Gas Oil Ratio, Pressure etc) & sidewall cores from E#1 Paleocene. So that should b derisked to the south (2kms betwn Echi-1 & N-1). What they didn't have was a full core of the reservoir at E-1, which was cut at Neon-1, hence the slow drilling.

Basically Neon's 2C is split up betwn Pal-A, Pal-B & Maastrichtian sands. They didnt give an exact breakdown other then saying that the 2C at the Maastrichtian level was reduced by 50% & at the 1C level by 38% which explains the reduction from total 2C of 75 down to 55 mmbbls.

The sands r pushed up against a salt dome that's pierced the formation from below. As a result, their high res seismic (at 2millisec instead of 4msec) should help them see clearly exactly how the reservoir is playing up along the Eastern flank. Hence the reason to drill 2 control wells on either side of the original discovery well and refine the numbers prior to FID et al.

Once they have data on these 3 wells mayb drill on the western flank of the salt at Neon West to see how that pans out. Worst case, it could b a thin sand either dry or with oil or just water bearing sand. That's all work in progress for their Geo's. Shallow depth makes it quick to drill when they get the necessary approvals from the ANP.

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Bauna should have produced 1mil bbl yesterday for this Qtr (total from 1Jan to 13 Feb is 934,365 Barrels).
Hope they can wrap up Patola Ops by mid-March to produce from the 2 new wells.