What is really important to notice in addition to the 143m interval is that this interval was found in the basement. This basement has been a prolific producer for the last 45 years in the nearby oilfields.
It is significant for those that are wondering what rates we are going to get from the basement and from 430 in total.
Personally I am hoping for 1,000's of barrels a day but I have little in the way of knowledge of the oil bearing and flow rate properties in this part of Brazil and oil in general.
I guess I am hopeful that we are going to get a significant flow rate. If we take the flow rate from 330 and the interval and extrapolate that to 430, we are looking at significantly higher flow rates.
I too have heard that the company is confident that there is significantly more than 20mmbl's of recoverable oil at 430. This augers well for the upcoming flow testing.
430A offers similar properties from what appears a geologically independent structure and this will be drilled in the near future. When last spoken about 9th May, they were thinking about whether or not they could define the drilling site from current mapping or whether additional seismic data was required. They have probably acquired the additional seismic data and analysed it so that they can determine the drilling site.
Knowing how conservative the company is, flow rates will overshoot on the upside. I look forward to the next few years. The company will become an oil producer and increase it's production base progressively over the next 2-3 years. Doesn't matter what the market does. Cahs will be king and that will flow with the oil. They are doing the offtake deals with Petrobas. ( Thanks for highlighting this CdChi1. )
The next few prospects in known producing oilfields in Brazil, besides existing oil infrastructure can only tell you that management have done their homework. They might not find the billion barrel oilfield but they will produce enough dollars to be able to target these potentially massive fields in offshore Brazil if they should choose. In the meantime, onshore revenue and future exploration dollars assured.
I look forward to reaping the rewards from holding onto this one for a few years.
Regards
Kojasper
ERH Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
