After reading through some of the posts this weekend i sit here scratching my head and wonder why some people have invested in a share when they clearly don't understand what they have invested in.
Although ERH,s management have taken the approach that half assed announcements in the current market condition is fair game they have announce one monster and that is the 55m interval flows and i cant believe that you guys still don't understand just how exciting that is.
I will try and explain this one more time. 330 has exactly the same formation. We know that that formation under stimulation and pump adds about 50 to 60% to flow rates.
We also know that 330 oil reserve is about 3.4km squared and has a 15 meter interval. And with this info we get a reserve of 7m barrels at 330 that has been announced by the company.
Now we know that 430 has a 55m interval and the land mass we are looking at i will let you work that out but will help
Sorry about the picture quality and will put it another way, we have 90 squared kms all up in Sergipe-Alagoas so that makes each block about 30 squared kms and the reserve covers about 20% of the block.
So we are looking at about 100% increase of land mass and about 366% increase in the size of the interval and this is just one section mind you at 430 compared to 330.
We also know that we are on the flank of this reserve so the million $ question is will it get bigger or smaller as we go down dip?
Maybe that should be what we should be debating?
Anyway best of luck this week with it.
Cheers
ERH Price at posting:
19.1¢ Sentiment: Buy Disclosure: Held
