Mason,
> 1) The combined flow rate was from five separate zones containing an estimated 266 feet of net pay.
This is a thick hydrocarbon section. It doesn't say anything about reserves, which are a function of thickness, areal extent, reservoir quality and several other parameters too numerous to mention. The point is that all by itself, this is not necessarily a cause for dancing in the streets.
> 2) The C-4 discovery well, which was drilled on the ``C'' segment of the block in Bohai Bay, People's Republic of China, has indicated potential production in a total of 11 zones. Test results of the remaining six zones in the upper half of the gross interval are expected over the next 30 days.
Refers to the fourth wildcat well drilled in this 'C' segment of the license. Any ideas on the results of the other three?
> 3) It is the first well in this area to test oil from Mesozoic-age sediments. Three production tests were run in the Mesozoic section between 6,950 feet and 7,620 feet, yielding an aggregate flow rate of 2,264 barrels of oil per day. API gravity ranged from 34 degrees
to 38 degrees.
This is not a high flow rate from a thick reservoir section, but there are LOTS of unknowns in these rates. API gravity is a measure of the 'thickness' of the oil. 34-38 degrees is very good. Doesn't say anything about other nasties, such as sulfur or heavy metals (vanadium and nickel, for example, not Pearl Jam).
In summary: interesting release, particularly the fact that they have found a new pay interval. Too early to tell what the ultimate impact might be. There are lots of variables that determine the economics of an oil field - water depth, faults in the reservoir, license terms, on and on, ad infinitum. Hope this helps.
Mike |
