For those that think fraccing will not be involved in extracting this resource, please read the last 3 paragraphs of this clipping.
Plus the 400 plus deg temps that were referred to in the report, is not a current temperature. I would be referring to the cooking temp that nature has subjected this oil. I know it is not the current temp as it would have been impossible to drill and log at that temp. GDY put all the oilfield equipment through its paces drilling their geothermal wells, and they were less than 300 deg C (270-280deg) from memory.
If oil bearing formations are subjected to a too high a temp, it no longer produces oil, it produces natural gas.
Off topic, but Interesting enough you hear of oil companies looking for oil in High temp, high pressure (HTHP) environments, yet by definition oil does not exist under HTHP, it only produces gas, though these gases can be wet, up to C5s.
It would have been useful if PB had discussed various development options, and this would have given the market a better idea of what was found. To me if it is Kerogen on the oil shale (Rundle Ck) variety, it would not be worth announcing as nobody is currently commercially producing oil from these types of formations.
Time will tell what we have. I do hope it has some value.
LNC Price at posting:
$1.92 Sentiment: LT Buy Disclosure: Held
