I have taken a closer look at the nearby Shell 3# well that is at the edge of the Steelhead Prospect. From the "sketchy" logs provided, gamma ray for sand / shale interpretation and resistivity for hydrocarbon interpretation, it would appear that an oil water contact was not encountered in Shell # 3 i.e the well had an oil down to outcome. See interpretation below.
The oil 30' (down to) of oil encountered in the Shell # 3 well at the edge of the Steelhead Prospect, along with yesterdays discovery at Cutthroat, in my view is a significant step towards to de-risking the Steelhead Prospect. Furthermore, if Steelhead and Cutthroat are connected, then SM58 Cutthroat potentially has a gross oil column of 940' or 470' of net pay assuming a net-to-gross ratio of 50%, if hydrocarbons extend down to the base of the O sand. A very interesting 1-2 weeks ahead for BYE and MEL.
Pre-drill, BYE were predicting a net pay column of 175' in Cutthroat; I reckon they already have 150' net pay in the upper O Sand.
Kind regards OldGeo
MEL Price at posting:
3.8¢ Sentiment: Hold Disclosure: Held
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