that 1.4tcf is CSM gas which was produced in the 50's BMWman the neww cc wells are drilling a different conventional sandstone reservoir completely different to the pree mae drilled wells so there is no chance of them been drained already. Need to really understand whats going on here before making outlandish coments.
A breakdown of whats going on
Scott Ryder estrimated 1.4TCF of CSM in place with 2P of around 900BCF yet to be confirmed. The current 290BCf they do have is CSM. The next reserve report includes the CSM formation and the conventional formation and will also have a stab at estimating gas in place for the other two reservoirs that haven't been drilled.
Helper is CSM but the Kentworth rail well was targeting a CONVENTIONAL reservoir previously untested and of unknown size this well tested at 3mmcf per day. They would need to define a resource boundary for this reservoir by drilling more wells to test properly.
The drilled the Ridge rnner wells to the south and the ASD wells to the north of the lease to define the boundarys of the formation in their land and the Oman wells will test the central area. Reember this entire conventional reservoir has NEVER produced.
Helper is located at the northern end of te DrunkardsWash on of the most prolific producing areas in the US the land the MAE is sitting on known coal and gas deposits and is one of the potential hot spots for unproduced energy in the country. Its also alot closer to the eastern gas demand than Texas of california the other big producers.
we have spent tens of millions on infrastructure in the last 12 months and now we have 8 wells of which 6 are close to good procudtion (fingers crossed not more hydrate probs) and a pipeline backbone throughout the entire property with redunancy built in by way of additional compressors and room for plenty of expansion.
So way ahead IMO 1. GET THE WELLS FLOWING AND THE DOLLARS ROLLING IN! We really need 20 - 25mmcf per day to cover expenses and have any chance of selling or growing the business. 2. Drill and test Oman wells 3. Improtant one:Drill and test the conventionalformation at Helper which could be a mini Clear creek. In all seriousness that reservoir alone cold have many hundreds of BCF of gas and it could be cheaper to produce.
Ultimate reserves w could be looking at this
1. CC CSM 900BCF - 1.4 TCF 2. CC conventional probably the same if not more i reakon 1- 2 TCF 3. Helper CSM maybe 50-100 BCF 4. Helper conventional: perhapes 250-500BCF
the Helper Conventional is byh no means proven but the CC CSM and conventional are almost givens given the amount of testing and info available.
Ultimate reserve report my two cents and prediction 3 TCF of gas with 1.5 TCF 2P and maybe about 200 BCF 1P then with oman wells 1P could be 400-500 BCF.
Well see how close to the mark i am in a month or so.
MAE Price at posting:
26.0¢ Sentiment: Buy Disclosure: Held
