vermilion #2 where is it at?..., page-5

Jocam, I've checked the presentation again, done some simple arithmetic and now conclude the following: V258A & V258B are each 5000acre leases (=2000Ha), rectangular in shape & around 4km (N-S) by 5km (E-W).
At least one sand (I think the G sand) has significant overlap with the lease on N. boundary where a major series of reservoirs totalling 458Bcf (same sands as V258 according to PSA), are being commercialised by another operator. From the location of the V#1 platform PSA can access this overlapped portion as leaseholder in the normal way. But if indeed no 'netting' protocols exist in GOM leases it's really a case of 'first in, best dressed'. If PSA chooses to drill multiple wells near the N. boundary and produce big-time from these they can actually draw gas across the boundary from the N. neighbour perfectly legally. Now it seems these sands are very permeable so this would represent a windfall gain to PSA if they can move quickly enough. On the other hand, the guys to the N. can do the reverse also. Interestingly, a similar situation exists to the S. where an even larger overlap exists with V265 with a reservoir of 220Bcf. PSA cannot access this from the V#1 platform location because it's 3-5km away by my estimate. Note also that PSA's other nearby lease V258B adjoins V258A to the East and the target sands here are approximately 50:50 split across the boundary, but no urgency here since PSA owns both leases. There would seem to be a case, therefore, for drilling just inside the S. boundary of 258A asap and putting 258B on hold for now. Comments anyone?