The Jum #2 hole had three targets when they started primary - CibHaz others - Miogyp / Camerina during drilling they announced another hydrocarbon showing at the MargVaz layer
The Miogyp layer is already proven as commercial with the Jum#1 hole
The BIG reserve is CibHaz [5 x estimated reserves to Miogyp]- prove commerciality with that layer and GGP was worth something
17/3 ann from GGP IB Daiwa bough a 8% stake in Jumonville prospect for 1.5 million. They would pay another $500k is CibHaz produced.
When management announced the 750bbls (and the market went crazy) they referred to it as the main target. This is total crap. Leading up to this ann, CibHaz was the main target. This was stated on more than 5 occasions on GGP ann's in the last 12months.
They also announced hydrocarbon shows at Camerina and Marg Vaz - but never announced the results of the tests.
Announcing 750bbls at Miogyp was not that thrilling. (1000bbls was a pass mark - I was hoping for 2000bbls)
Then they revealed that Jum#1 was producing at much lower levels - by saying that 750bbls tripled production. So rather than achieving a positive dilineation well for Miogyp that confirmed estimatioins - they killed Miogyp by revealing that they were unable to maintain production.
They might be able to increase production - yes - what you wanted was a well that could hold production levels. Spend enough money - you can make gold - you'll lose money doing it though.
I believe GGP's announcements to be uninformative at best - closer to mis-leading is fair.
GGP Price at posting:
5.6¢ Sentiment: None Disclosure: Not Held
