1. HDR's Ching 2 target depth was some 2835m, but drilling seems to have stopped at some 2655m They probably found the bottom of the resovoir at 2655 and decided to start wire line logging becase the drillers were covered in black mud.
2. Ching 1's oil quality was 31 API? Correct? Where is this quality on the grading/ value/ flow rate scale? When you see the oil price in the media they are quoting "west texas intermediate" which has an API of 39 and traded at an average price in 2000 of $US26.30. Chinguetti is close to "kuwait blend" with an API of 31 and which traded in 2000 at $US23.98. This discount would partly be due to the API, partly the sulphur content and perhaps shipping costs. Overall I think Chinguetti oil will sell for around 9% discount to the media quoted oil price.
As for flow rates, I think the porosity and permeablilty of the field will have more impact that the API. iHow much oil have the sands soaked up and how freely can the oil flow through the sands? There is another thread on HC speculating flow rates between 7000-30000. The flow rate will have a big impact on valuations because the cashflow rate is in direct proportion to the oil flow rate.
3. Takeover speculation. I'm no expert, but have difficulty in understanding why move would be made at this point in time. T/over processes take time and with the drilling program underway the outlook would change from the time proposal is made to when voting would take place I agree. Can't see anything happening till after Banda at the earliest.
HDR Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
