I can appreciate why Shell has focused on the shallower formations which may have permeability in the range 0.7 - 1.0 mD. The tighter the rock the greater the tendency for liquid condensate and water (drilling/fraccing fluids) to block the formation. There are production methods which have the potential to increase the recovery from blocked reservoirs, for example, 1) innovative downhole tools which emmit seismic waves that can vibrate the liquids free from tight rock because the liquids are held in place by capillary forces, 2) downhole heaters with intermittent solvent soaks, and 3) repeated soaks of special chemicals which make the rock less liquid wet i.e., wettability change chemicals, but having to repeat the procedure increases the cost.
My feeling is that the quickest way to generate revenue is to follow the lead Shell has provided by prioritising the more shallow higher permeability zones.
I am aware that I am providing free advice, I might seem like a fool, but that's how life gets you when there's no oil and gas work and you're over 60. Anyway, if the sp gets up to $A1 - 2 per share in the next couple of years it'll be worth it.
OMA Price at posting:
37.0¢ Sentiment: None Disclosure: Not Held
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