quick thoughts on opl investor presentation on los Echegoin gas plays are going to be seperate, compartmentised reservoirs, so decline is going to be rapid and severe (small pockets decline fast)
6 wells cost OPL A$2m, so assuming the partners are paying 100 for 75, thats A$650 each for wells ... assuming A$6.50 net gas, thats a breakeven number of 100 mmcf/pocket.
Deeper oil plays in the Monterey are going to be hard work. I'm reading about single-digit millidarcies in the Monterey Shales, and that means fraccing. On the plus side, the low to non-existent permiability means the oil shouldnt have escaped updip yet - the Monterey only got laid down in the Miocene, and in geological terms, thats late last week.
On the plus side, the Monterey shales apparently have lots of porosity, and that means lots of space for the oil to hide in.
On balance, it's pretty good.
Ian WHitchurch
NEO
nuenco nl
neo/opl, page-4
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