re: Cue Energy - more geo clap 25 fold increase from the...

re: Cue Energy - more geo clap 25 fold increase from the background gas is again promising. If this increase continued over the whole interval then again we probably have a HC column. But if they just talking about max 25 and the rest is less then you can't say. The first almost definitive indication of HC will be tested by logs. They would have to drill some 25-50 metres below the potential HC zone to be able to log cover the zone of interest. Ideally they would have to look for a good claystone interval that would form a good seat seal for the next casing string. It looks like they don't have problems with that. Then next test is a recovery of the sample to the surface using MDT or RFT tool. If successful (including pressure measurments) then they would know density of HC from the pressure gradient + from the sample itself. Ultimate test would be the production test. DSTs are usually not conducted any more. If the porosity log and resisitivity logs (by looking at resisivity of the formation and drilling fluid invasion profiles, more invasion more porosity) indicate good porosity then this well should flow like the clappers.

Total gas is a measurement of all gas fractions coming from the hole. C1-C5 is a total gas breakdown. If there is only gas in the hole, then only C1-C4 are usually recorded. C5 can be split into iC5 and nC5 which we don't have. BUt if they are talking about C5 then it looks like we have oil and that combined with 25 fold increase gives me a very good warm feeling. 1% of gas = 200ppm of gas. If they have about 5% gas only in the hole, then again this would indicate that more heavy factions are present in the well (oil).

Now we have to be patient and wait for the log results. Within next few days (Monday) we should know preliminary results.
Anxious