MEO's announcement today about Gurame drilling, talks about the deep gas potential of the structure being the main objective of the well, not the oil potential in the sandstone reservoirs, or indeed in the Belumai carbonates below. This is clear from MEO's announcement today and consistant with previous announcements MEO has put out.
But the main point in my original post is that the well is clearly planned to assess the (known) gas potential of the structure, not its oil potential. I think that this is a mistake and a possible reason for the lack of industry interest in the farmout. Well......something was!
MEO may say that it is happy to carry 100% of the drilling cost for this well, but from what I have seen of its cash position, the failure to farmout has major implications for the company and its shareholders.
Yes, the well is designed to drill into the Belumai carbonates but the cross-section shows that it will not penetrate deep enough into the intersect the oil leg. Possibly this diagram is in error and the well will drill deep enough into the Belumai carbonate (an unproven reservoir???)to penetrate the oil leg before TD. I can only go by what was published.
But however you want to shake it, the known Belumai sandstone oil leg will not be tested what appears to be a more sustantial oil columm in the Baong Sandstone above (based on this diagram) will be missed entirely.
MEO Price at posting:
21.5¢ Sentiment: None Disclosure: Not Held
