FWIW, MEO have said this in their updates that they are not conducting any flowtests at A#1. So firstup size doesnt matter, thickness & HC saturation of the sands & pressure r mission critical.
All they require is the following:
- Whether A#1 intersects any HC's - Gross thickness of combined Calypso+Legendre sands (eg: 100m) - Clean 'net' thickness (eg: 50% or 50m of the gross) - HC saturation within these sands (eg 40%, minimum water saturation) - Porosity (eg: 17-22%) - Permeability - Most imp pressure within sands (via the MDT logs run on reaching TD).
Plan for A#1 should b:
- drill out the top hole to 445m, - set 20" casing, - drill 17.5" section to 1875m, - set 13" casing & - drill 12.25" section till TD of 3635m.
As for the stratigraphy et al,
- Muderong Shale is the local seal - Has a tiny sand bed in the Upper Jurassic called the Angel SST, which could have some oil (not critical to A#1). - This is bound at the base by the Dingo Claystone (DCST) - Followed by an unconformity (imp. milestone) - This is underlain by the Calypso sands - Followed by the Legendre Sands (mid-Jurassic) - The deeper Triassic sands (Mungaroo) could b water wet, but worth drilling into, so as to establish the GWC.
So should MEO report a combined 100m of gross HC bearing sands with decent porosities, then the SP should run.
They estimating the gas 2b predominantly dry (with low CGR 10-12 bbls/mmcf).
So A#1 should b very interesting, coupled with the reservoir parameters, which r reqd in proving the GIIP & rec. resource.
Depending on the outcome of A#1, they may opt for A#2 & perhaps consider flowing it (happy with 40+ MMcfd in time, not 2day, though).
A#1 is all abt testing & proving if HC's r present & whether there's enough pressure as per the MDT tool.
So watch the trading volume, the moment the depth ticks past 3100m with any indication of HC's (100 units of gas shows etc etc).
MEO Price at posting:
53.0¢ Sentiment: None Disclosure: Not Held
