while we wait....., page-10

For what it's worth, the present delays suggest to me that CVN/POE have been having drilling difficulties with their most recent well, but in the overall picture this is probably a positive.

The key to the higher flow rates at Wichian Buri North is the higher fracture density of its volcanic reservoirs. That is precisely the reason why I like Wichian Buri North so much more than Bo Rang - because WBN is intensely faulted and fractured, as was the original high-flowing Na Sanun East area, immediately adjacent to that major north-south fault that divides NSE from NSW. Bo Rang on the other hand is an open, gently-domed structure, with no major faulting, lower fracture density, and therefore tighter, less-permeable volcanic reservoirs.

It is the faulting, fracture density and, crucially, the interconnection of these more closely-spaced fractures at Wichian Buri North that is providing the better porosity and permeability. And it is this better porosity and permeability that has given CVN/POE repeatedly good oil flows in the last four wells there.

The downside though is that high fracture density is the enemy of any drilling operation. This is particularly so when attempting to drill the full thickness of a densely-fractured volcanic unit with an open (uncased) section of hole, as described in CVN's last report, and particularly so when drilling inclined or deviated wells, as that report also implied: the drilling fluids go off into open fractures, instead of flushing the bit clear of cuttings and bringing them up the surface, so the drill bit gets bogged; blocky fragments of hard volcanic rock cave in behind the bit, jamming it down the well; drillstrings twist off downhole and then have to be fished; wells have to be plugged back and deviated, or abandoned and started again. It all ends up costing a great deal of time, money, blood, sweat and bad temper.

So my guess is that the ground is fractured to hell and it's giving them a few drilling problems, hence the delays. But I'd take this as a further sign of how much better the reservoir porosity and permeability is at Wichian Buri North, and of how much better the average flow rates per well is likely to be.

From my point of view then it's been a nice opportunity to accumulate.

(Only my opinion though. Not intended as advice)