Gulo,
I'm fully aware of the image CWPC has. Over time, though, this asset, if it is economic, will not just 'sit there'. Eventually it will be put to work. It will be CWPC or a partnership or a sellout, perhaps.
From their website:
There are three known prospective targets to drill test on the Firebag East Project covering some five townships at this time. The potential pay zones encountered from the previous drill cores and logs are as thick as 150 feet in the Wabiskaw formation and 58 feet in the Fort McMurray formation with several drill hole intersections grading better than 7% oil by weight. The best grades encountered have been from a 20-foot interval in the Fort McMurray formation from 628 to 648 feet in drill hole 7-11-95-25-W3M, which graded 9.1% oil by weight with 36% porosity and 47% oil saturation. Within this interval, the best core sample was 11.5% oil by weight and 63.9% oil saturation. For reference, normal cut off grades for Athabasca Oil Sands SAGD production is 7% oil by weight, 30% porosity and 60% oil saturation, indicating that the Firebag East Project has world-class exploration potential.
This leads me to believe the asset is economic, location in Sask notwithstanding. What do you say to this report?
apioil.net
David |
