A good post on the CVN forum by 'Onceover'(post #: 4791579) who...

A good post on the CVN forum by 'Onceover'(post #: 4791579) who attended the CVN Annual Meeting that is of interest to SUR observers; especially after the irksome SUR AGM Presentation which presented no new data on Thailand for shareholders to absorb.

Repeated highlights in the Presentation included - "Mapping and prospect ranking underway on leads inventory, 4 of which Sun believes may contain >50 million barrels of oil in place" - "1-4 exploration wells to commence in Mid-2010, subject to Gov’t approvals" - "Analogous to Carnarvon’s Phetchabun Basin Oil Fields with strong potential for fractured volcanics" and "50km south of the prolific Sirikit Oil Field (>200 mmboe reserves & ~20,000bopd), in same oily basin".

The "same oily basin" hmmmm! from Onceover's CVN post "Ted [Jacobson - CEO] agreed that it is very hard to allocate reserves at Bo Rang, when one well flows strongly yet an adjacent one does not flow at all. He explained that the reservoirs appear to be tightly compartmentalized, not just in terms of flow rates, but also in terms of the API rating of the oil, which can be quite different from one well to the next"...so much for the "same oily basin" BS.

However, the CVN AGM PowerPoint presentation, slide 17, shows "Deep Oil Kitchens?" adjacent to "Numerous leads" and "Bright seismic amplitudes - Volcanics" so perhaps the leads are "Analogous to Carnarvon’s Phetchabun Basin Oil Fields with strong potential for fractured volcanics"; why don't SUR explain the similarities based on the recent good quality seismic as shown in slide 17 to give more confidence to investors?

With CVN the Operator of L20/50, SUR is not in charge of timing of the drilling. CVN will drill at an opportune time for them as outlined in the post "Re the loan of a rig to Pan Orient, he [TED] explained that CVN would in return get to use one of the rigs for their L20/50 drilling next year. If either company had significant success outside the JV, they would then have to get separate rigs for their own projects.
Re the limitations of two rigs, he [Ted] explained that, as always it was the availability of good people, not equipment that was the limiting factor, and that a third rig would cause both personnel problems, as they would have to take men from one of the present crews"; so SUR! - sit back & wait for a time that is convenient to CVN to drill.

But, Ted was evidentially very upbeat about L20/50 prospects
"From a long term investors standpoint though, the next year looks very interesting, particularly with the drilling of L20/50 in the second half. The recently acquired seismic there has outlined a deep oil kitchen, good structures and potential reservoir units. The possibility of a Sirikit-style sandstone reservoir was even mentioned, (though then hastily retracted, after a grunt from the Australian Shareholders Association representative sitting at the front). A Sirikit-type discovery would be the stuff of dreams, of course."

Then again, perhaps I'm being a bit finicky regarding the SUR Presentation as they do state;

"•All historic wells off structure
•Petroleum kitchen adjacent to leads
•Southern extension deeper than previously thought
•Potential for stacked fractured volcanics
•Also classic sandstone plays"

In conclusion, 'Onceover's' remarks are much more enlightening than both companies AGM presentations; I congratulate him/her on a great post and suggest that followers of the SUR post jump over to the CVN forum and read the rest of the post (and give Onceover a tick to encourage further interesting reports).