I have been investing in Oil and Gas shares for a number of years. But by no means a O/G expert.
Recently i have been following Central Petroleum - CTP.
SANTOS (to farm in 70% of a CTP Lease) is currently drilling a gas well near alice called DUKAS-1
The lastest update has me slightly confused:
Central Petroleum Limited (ASX:CTP) (“Company” or “Central”) provides the followingupdate in relation to the drilling of the Dukas 1 well.Dukas 1 is currently at a depth of 3,704m (MD) and in the Gillen Formation. Formationpressures have been encountered that are significantly higher than that seen in previous wellstargeting the pre-salt play (Mt Kitty and Magee). This overpressure is associated with an inflowof gas of yet to be determined composition.The Joint Venture is now considering the best options for a forward plan. Such options mayinclude suspending the well and returning to drilling operations at a later date. Whilst this delayis disappointing, the presence of such overpressure in association with gas adds to theevidence from Mt Kitty and Magee that there appears to be a working petroleum system atthis location.The well has not, as yet, intersected the primary target Heavitree Formation, although it isexpected to be within a few hundred metres of the current depth. A further update on theforward plan will be announced as soon as it has been decided by the Joint Venture.
I was wondering if there are any O/G experts out there than can help explain what this means?
It sounds positive. They at least have gas. But why would that be considering suspending the well?
