Been re-reading that last Achillees Heel annmnt AGAIN.
I didn't realise just how GOOD a read it is.
Well when one sits and contemplates what the IRR is going to be like.
http://clients2.weblink.com.au/news/pdf_1\01723580.pdf
Phase I: Highlights –
All Three “Achilles’ Heels” Substantially Mitigated
Brittleness:
o Analogous to
Haynesville and Marcellus plays
o
Highly amenable to fracture stimulation operations
Hydrocarbon Phase / Thermal Maturity:
o Volatile oil vapour phase with
higher liquids content than forecast
Bottom Seal / Overpressure:
o
Elevated pore pressure materially above hydrostatic gradient
Matrix Permeability:
o Analogous to Haynesville &
substantially higher than Eagle Ford
Porosity
o
Excellent by comparison to other successful shale plays, including Eagle Ford
And the
KICKER:
The Company believes that Icewine #1 cored a new kind of hybrid resource play that appears to have numerous similarities to reservoirs known as Low-Contrast Low-Resistivity (LCLR), or Low Contrast Pay (LCP). These reservoirs are characterised by
production metrics and peformance more commonly associated with conventional resources (Bodnar, 2015).
**EVERY CATEGORY IS COMMENTED ON AS BEING BETTER THAN OR
MUCH BETTER THAN IN ALL CASES**
I was a little concerned with some espousing sub $40 bbl breakeven, and I still am to a degree, but I tell You what, I'm certainly now convinced its a possibility. I'd be extremely surprised if it isn't very close to $40 bbl given all we've chatted about the last few days.
d.
(20min delay)