what the mel?, page-19

Dear SeamFiend Mate

I am happy MEL discovered KF.

But reading how MEL operates this discovery rises my engineer`s and investor`s blood pressure because they do not do what 99.9 % of all Oil and Gas Companies would do.

Little MEL drilled a hole. Had some gas shows and discovered a conventional gas reservoir (Ripley). A low hangig fruit and they should drill deeper, examine this discovery, how to optimise the gas production from this formation etc (which is difficult enough and for which you need money).

But no, instead, MEL thinks,lets take our small money and let`s look into formations that are much more difficult to produce and where we probably produce just a smaller rate and amount of gas.

What a strange strategy.

Dear MEL money manager please stop your engineers and geologist wasting money and explain them why early money is good money (that can be earned easyly from Ripley)

The vision, dream that we crack the code how to produce the with the KF discovered tight reservoirs can be done later when we can pay that from a daily cashflow.

Some weeks, month ago, I think it was the managing director who said they are going to use generation X technique from the US.

When I see the foto from the frac operation I can lough only. Looks like a "texas cowboy approach that plans to frac the hell out of this formation" operation from the 1950ies. But at the end he had not enough money for the real big frac equipment from HAL or SLB and is surprised now he got a screen out = finito, and service men can write their service tickets and go home (see new media release)Moreover you will need now something like a Coiled Tubing Job to clean out the frac sand from the well again. Thank you for wasting money.

Fraccing is a complex technolgy. On the one side you can try this "cowboy approach" (which is sometimes good, successful and okay)or you use the state of the technique standards and then it becomes a complex sometimes expensive operation.

Did MEL do any rock mechanics, do they know the stress regime of the formation, did they have enough geophysical logs, did they read the Nolte and Economides text books before they decided to frac.

In my opinion we need a 3D seismic and more deep wells in this area - as fast as possible. So you can get the GIP for the Ripley, so you can core, can log and understand he conventional and the unconventional gas formations. With this knowledge you will have a much better chance to crack the tight gas too, AFTER you earned good money from the conventional Ripley first.

Yes, I have the impression MEL got good exploration geologists and they have knowledge about CBM. But I see a lack of standard petroleum engineering. Therefore they do not know how to operate a classic conventional gas discovery - My education and work experience let me come to this conclusion with the information I read about MEL