Hi everyone – all the long suffering VILains!!!!! I am still...

Hi everyone – all the long suffering VILains!!!!! I am still trying to come to terms with what we actually know about SD. There are many conflicting takes on both the ADX and VIL forums so I wanted to look back at the announcements (what else do we have to go by???) and work out my take on what we do or do not know – you know, the known knowns and the known unknowns etc!!! Looking at all the known knowns I am of the opinion that SD is a GOOD investment. Pity is I bought before the LP announcement!!!!! It is this that has stuffed the VIL sp, as well as the SD slow motion, not the known facts about the SD well!!!!! So I will be staying in VIL for now.

What do we know so far? Here are the guts of the announcements.

Announcement by ADX 3 October 2011
• Encountered an interpreted oil column of approximately 30 metres on the basis of pressure data as well as oil recovered together with mud filtrate from down hole sampling. GOOD
• To determine the potential commerciality of the discovery a well test will be required to confirm oil production at commercial rates. GOOD
• Wireline logs, as well as formation pressures and reservoir fluids have been acquired over the open-hole interval from 999 to 2011 m GOOD
• Wireline logs indicate several potential reservoir zones within both the Tertiary and Cretaceous aged sections respectively, with relatively high porosity and permeability interpreted within Upper Cretaceous aged formations. GOOD
• Wireline fluid sampling from an Upper Cretaceous aged reservoir has recovered a mixture of drilling mud, drilling mud filtrate and oil. GOOD
• This recovery indicates deep invasion of drilling fluids into a permeable reservoir and the presence of moveable oil. GOOD
• After running casing to preserve well-bore integrity, the well will be suspended to secure the well pending future production testing NECESSARY
• Following suspension to secure the well the current drilling rig will be released from location and testing operations will be conducted utilizing more appropriately sized and cost effective equipment. NECESSARY

Announcement by ADX 26 October 2011:
• Challenger drilling rig has been released from location without incident. All related equipment has been demobilized and the well and camp site have been cleared. GOOD
• Preparations for selection and contracting of equipment to conduct a testing program are nearing completion following the short listing of suitable rigs. NECESSARY
• Testing of the hydrocarbon bearing zones will determine the commerciality of the discovery and confirm that oil can be produced at commercial rates. NECESSARY


Announcement by ADX 3 November 2011:
• Chemical analyses of the recovered well samples have confirmed the reservoir fluids to be a typical live crude oil and mud filtrate with minor amounts of water. GOOD
• Preparations for selection and contracting of equipment to conduct a well test program have been completed and an invitation to tender has been sent to 5 drilling service providers.


Announcement by ADX 10 November 2011:
• Completion of the Operators’ revised mapping and volume calculations utilizing a new seismic interpretation integrating well results from the recent Sidi Dhaher well. GOOD
• Subsequent down hole pressure measurements and sampling confirmed the presence of an oil column. GOOD
• Based on the available data ADX has estimated the mean contingent oil in place (OIP) resource for the Sidi Dhaher oil discovery to be 51 mmbbls. GREAT
• The confirmation of recoverable volumes and resulting potential reserves are contingent upon a successful well test with the objective of proving commercial flow rates and likely recovery factors. NECESSARY
• ADX is currently in the process of finalizing rig selection to progress with well testing as soon as practically possible. SLOW