What's all the fuss about over a broken drill bit anyway, if the claim is even true?
PB#1 and PB#2 both had only FOUR significant gas zones in the Ismay totalling about 70 feet for each well. PB#3 has already encountered THREE of these. Incidentally, the fourth gas show in PB#2 was only over 5 feet anyway. PB#3 has already encountered 74 feet of significant gas shows in the Ismay, about the same as the previous two wells.
PB#3 has never been about the presence of gas. It's about the ability to bring it to surface at commercial flow rates without water issues.
P90 Low estimate gas for the Ismay is 9.0 Bscf. That will now almost certainly be increased with the continuation of these gas zones.
They can pull the drill bit out now and it won't matter. It's all about GDN's strategy of getting the gas to flow to the surface at commercial rates.
By the way, the P50 Best estimate for the Ismay is 31.5 Bscf. At say $4.00 per million cubic feet that would be worth about $126 million less production costs or about 30 cents per share. That is ONLY for the Ismay. It does not include the lower potentially larger parts of the field.
There is still away to go to get this well to flow, but if it can be done then do the math. I am open to any correcetions.
GDN Price at posting:
12.4¢ Sentiment: Hold Disclosure: Held
