KAR 0.00% $1.48 karoon energy ltd

Google info, "Net pay is the thickness of the porous, permeable...

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    Google info, "Net pay is the thickness of the porous, permeable interval containing commercial
    hydrocarbon saturations. The thickness of net pay compared to the total pay zone
    thickness is known as the net-to-gross ratio. This is an important factor in
    hydrocarbon volumetric calculations of reserves, and the design of facilities. Net pay
    definition is particularly difficult in low permeability gas reservoirs, since sands
    which are typically excluded as being tight may, in fact, contribute significantly to
    gas movement.
    With no net pay cut-off, gas reserves may be over estimated. This might mean
    daily contract quantities are not met, with the consequent implication of financial
    penalties.
    With a net pay cut-off that is too high, gas reserves would be under estimated.
    This could lead to the production facilities being designed for too short a lifetime,
    with possible consequent loss in gas reserves.
    Given the importance of net pay definition, it is still surprisingly arbitrary being
    normally defined by a single porosity or permeability value.
    GL Tomorrow. DYOR.
 
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