have not even reached rancak , page-4

This is such a great announcement in such a prolific hydrocarbon fairway, I would almost be prepared to bet on a commercial discovery with what we currently know about Kurnia to date. The price action confirms that many also hold this view:

* Three gas/oil bearing zones so far with total column width of 5 + 6 + 8m = 19m;
* We still have not reached two of the three pre-spud targets. Rancak could provide additional gas/oil and obviously the primary target Kujung is now looking very prospective as either the 200mmblo leg or a massive condensate field;
* Increase in pressure on the choke manifold suggests a highly pressurised gas zone. The gas influx was controlled by increasing the mud weight;
* This discovered zone comes after a "drilling break", which means the rate of penetration went up. This suggests that the rock immediately above this recent zone (the cap) is extremely hard (which we know from the previously slow drilling progress) and the sandstone below relatively soft. This is the perfect scenario for a commercial gas discovery as it traps the gas within the sandstone enclosure and doesn't let it escape;
* The oil fluorescence increased with depth and the sandstone at the base of the zone was 100% saturated. Oil was observed on the surface of the mud;
* Oil and gas together confirms potential for wet gas field (condensate), which has significantly higher value than gas alone.

Kurnia seems to keep getting better the deeper we get... this is usually the opposite of what usually happens with gas shows at the top and nothing down below. Part of this is due to faults in the enclosure and the hardness of the rock. From the drilling success to date it looks as though there are minimal encolsure faults and the hardness of the rock cap has created a perfect environment for gas and oil to be trapped in the relatively soft sandstone.

Oil is now at a three week high and the markets have shaken off their worries for the moment and look to be trending higher. Given we've got about 100m to drill to reach Rancak and the DOW will be green overnight (futures +100 atm) if they find more of the same over the weekend we could see another 25% gain come Monday, which would mean an all time high.