The 51 million barrells is a mean estimate between high and low estimates of SD. The most probable oil in place estimate at 90% is about 13 million barrells.
There does appear that there is more confidence now that there is oil in SD than when they first discovered.
The 51 million barrells is an oil in place estimate. The expectation from what I have found is that between 25-30% will be able to be recovered. At 25% thats 12.5 million barrells. VIL`s stake would be 1.25 million. Given a $10 OIP value thats $11,250,000 dollars for SD alone. More than the current SP. A commercial flow at SD would then give some additional value to the chorbane acreage.
It will come down to. Is it commercial, How many bpd What is the actual volume of recoverable oil. Is there problems with the water cut.
Vil`s value will follow what the test finds. It has a good chance the SP will rise.
VIL Price at posting:
0.5¢ Sentiment: Buy Disclosure: Held
