Don't forget guys that they have done analysis on liquids from the HRZ from Ice 1.
The issue here is that its not necessarily representative of the liquids/gas that will be produced from the well, its representative of whats contained within the source rock reservoir.
* Oil / condensate observed leaching from HRZ core
* Mass spectrometry analysis of mud gas confirms liquids rich gas throughout the HRZ shale interval
* HRZ core samples analysed for Total Organic Carbon (TOC) all yielded values in the range of 2.3% to 4.9% (avg 3.5% - by weight)
* Initial results support HRZ thermal maturity as per pre-drill modelling at Icewine #1
Overview The leaching process (using toluene) is ongoing; however, the initial observations of oil / condensate leaching from the core indicate the presence of liquid hydrocarbons in the HRZ shale at the Icewine #1 location.
Consistent with the results seen from mud gas analysis whilst drilling, the final mass spectrometry analysis has confirmed the presence of liquids rich gas throughout the HRZ interval.These results will be integrated with data from the core to provide anESTIMATE OF THE GAS TO OIL RATIO in the coming weeks.
Total Organic Carbon (“TOC”) content of 3.5% average (by weight) has been confirmed and is favourable by comparison to other successful North American Shale plays. TOC by volume is likely to be significantly higher and will be confirmed post X-ray diffraction (“XRD”) analysis.
Geochemical results to date are supportive of the favourable thermal maturity window predicted within the HRZ shale at the Icewine #1 location. Additional analysis of the core is ongoing to provide a definitive thermal maturity value.
Highlights
* Final Thermal Maturity Analysis Indicates Icewine#1 in Crossover Between Volatile Oil and Condensate Window – Pre Drill Predictions Proven to be Accurate
* Majority of 272,000 Acres Mapped to be in Thermal Maturity Sweetspot
* Resultant Low Viscosity Vapour Phase Hydrocarbons Modelled to Flow at Material Rate Given Porosity and Permeability Results
Overview
Vitrinite reflectance analysis grades thermal maturity by measuring the amount of light reflected from organic matter. This analysis was recently completed, and confirmed that the core from the Icewine#1 well is in the crossover between the volatile oil and wet gas condensate thermal maturity window.
This is the ideal thermal maturity environment, which is coincident with vapour phase hydrocarbons with HIGH LIQUIDS TO GAS RATIO. This enables higher flow rates due to low viscosity whilst also maximising liquids production and driving better economics.
So it appears they were starting from a modelled high relative liquids to gas ratio anyway.
There is much in these annmnts that support the modelling but it is not absolutely definitive when it comes to final GOR numbers.
Roll on the sample testing and flow rates.
d.
88E Price at posting:
5.5¢ Sentiment: Hold Disclosure: Held
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