interesting & massive future ahead

Well an interesting point was that the Puntland wells are going to be one for each block, so one paid for the other free carried! Very useful. Some of the Puntland targets are larger than I remembered at almost 4bn STOOIP on one target giving the 3 target reservoir formations. 200Bcf and 3mmbbls gross will do nicely. The next well on Smith is described as a developmental well rather than an appraisal so certianly is within the same closure as Smith-1 and is not expo on another target. $30-60m from Smith over the next 2 years suggests to me back to back drilling and a very aggressive development. It will be fanstastic if AOI mobilise for Puntland in April and I think we could have some interesting information from Georgia in the recent months too. Oil/gas and possibly CBM. I thought the presentation made pretty solid reading and we're certainly not valued on Smith development nor the spudding of two wells targetting some 6-8bn bbls by year end. This one isn't even valuing in it's Smith development at the moment regardless of Georgia and Puntland so I'll continue to add here. I'd expect some swift movement if when AOI make their first Puntland announcement.

As to Smith and the volumetrics, 20ft = 800boepd on 6/64 choke so the hc saturation levels are high the pressure and oil/gas shrinkage is high with no water in the pore space its all hc. Possible of 120ft vertical pay (wirelined with only 20% restricted test). Reservoir quality is high or you wouldn't get the test performance achieved to date. As I've been saying the reserve report will make intersting reading. 1680 US acres is 6.8 sq kms, if that's the closure size of smith its not too shabby either (not mind-blowing but not small). Well its now on a long term production test at the moment and I would assume that the choke size currently remains unchanged. They will monitor production performance and flowing pressure over time and adujust the choke accordingly without over producing the reservoir. The may ease back on the choke a little but bottom hole pressure is in the range of 11000psi so I wouldn't expect too much more from the choke. We may get a little improvement on liquids flow as the well continues to clean up and the channels to the perfs settle. A frac can really open up these deep reservoirs, again in the presentation today they hint at the possibly of not frac'in the other pay but just comingling.

Captain Nelson Forties STOOIP definition http://en.wikipedia.org/wiki/Oil_in_place