We are unaware of the Scope of Works for the Independent Expert. But presumedly the main task would have been to provide an estimate of potential gas accumulation, principally based on the recent 3D seismic data available, plus any other supporting information. My feeling is that the company will provide some clarity wrt the classification of the gas resource that the IE may have been prepared to sign off on. SGC has emphasised its view that it has sited the Borba well location optimising likelihood of both gas intersections and improved reservoir characteristics. The IE may have taken a more conservative view that until proved otherwise general characteristics of many past Sacramento gas wells have been "tight" - Dempsey is an example, and it would require secondary stimulation to improve gas flows in production. GJ has previously mentioned that Dempsey may have been sited with more focus on intersecting interpreted gas reservoirs in apex positions of the anticline rather than considering reservoir quality based on fundamental sedimentary interpretation.
This is just my thought, I could be completely off on a tangent.
Regardless there is no doubt that Borba is going to be a very gassy well, most likely with many regular updates to the market. I'm certain this is going to be an exciting month ahead, and I can't wait for the spud announcement.
SGC Price at posting:
11.0¢ Sentiment: Hold Disclosure: Held
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