This is more so for us laymen mug oil punters, but I’ve just been doing a bit of light reading of some other drilling reports on the asx to get a feel for the possible significance of the hydrocarbon shows around 1811m-1875m. I’m not trying to compare Heron in any way to these other wells, but just looking at the process and what c1-c5 gas shows with fluorescence can potentially lead to. I’m sure there’s just as many instances of these wells turning out to be non-commercial, but there’s actually a lot that turn out to be commercial oil discoveries.
A couple I've just been reading this morning - Carnarvon's (CVN) Wichian Buri North 1 Well in April 2001 and Victoria Petroleum's (VPE) Eagle-1 well in July 2001. The latter one was interesting because it had only c3 and c4 gas readings with fluorescence over the top 120m and c3-c5 with fluorescence over the bottom 17m, yet eventuated to a 131m gross oil pay with 91m of net oil pay!
Also from a couple of other reports that I've read, oil shows can tend to be supressed by heavy mud weight which is conceivable with Heron because they've got so much uncased hole at the moment.
I wouldn't be suprised to find that we’ve got a 64m gross oil column when they run the logs……as yacheng was nice enough to point out the other day.
I think a lot of people have overlooked this. And it's probably why we're seeing a bit of accumulation around the 25.5c to 26c mark from the more knowledgable investors I'd say, rather than seeing the price drift away.
Cheers, Butcherano.
BKP Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
