Fellow Shareholders update, page-38

DB,

re: Would it be impossible for them to explain what adding the core data may do?

With the exception of 1 listed company, no one in my memory has done that on the ASX.

I touched upon the 'core' bits last week (refer my post dt 12Apr). Just so that everyone here is on the same turf, here's a quik look at what happens.

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Step 1:
Basically when u drill/core a well u run geophysical logs. This is yr gamma ray, density, resistivity, neutron, sonic etc. One also collects sidewall cores & take pressure readings, This batch of info is readily available for a quik run thro' the field's model done inhouse by the Operator.  

Step 2:
Cairn have cut 216m at SNE2 & 144m at SNE-3 & BEL1, So that's an awful amount of rock that the Bourbon's would have ferried back to Dakar firstup & dont know where after that !!

Basically the Operator is in control of the core as they r shipped off to a designated lab for detailed analysis termed as RCA & SCAL (ie routine core analysis & Special core analysis).

Purpose of RCA study is to work out the detailed poro/perm of the reservoir sands by doing air, mercury, brine injections.

Purpose of SCAL is to go even deeper, ie electrical, NMR, capillary pressure, reservoir performace etc.

An Operator can request fast-track work on certain depth intervals from the Lab. The static & dynamic model has to honour the geophysical logging data & the actual core data. (namely porosity, permeability, fluid saturation etc etc).

That's what RISC havent done. It takes some time for the entire core to be analysed & data loaded into the model. However, for starters Wireline data, pressure readings from the MDT, 3Dseis, velocity data etc are all good enough for inferring the Volumetrics. One simply re-tweaks the numbers (eg: Rec fac will change depending on the pressure in the pores etc).

That's the simple version.

As for the well count, Cairn had always stated 3 firm +3 Appraisal wells. So SNE-4 is the first of the 3 contingent wells. I forgot the actual 'budget' that James from Cairn had alloted for 3Dseis+drilling.  

As FAR released the first resource update on 8th Feb, the updated Resource increase reported last week is simply using the figure of 2C-468 as a base (not 2C-330 mmbbls), increased by 93 mmbbls to 2C-561 mmbbls. And this still doesnt include the 100m gross SNE sands seen at BEL-1. So expect a revision in due course. I hope they wait for SNE-4 to conclude logging.

There's always pressure on the Wellsite Geo's & the Wireline Logging team to fwd the clean version of LAS files/data back to the head office for the Reservoir dudes to get stuck into & then subsequently release the findings to the Bourse. The end result takes time, the quick bit is what they release at the end of the well.

Hope this helps.