Cy, Endeavour International (END) -- Tremendous news! Noreco, one of the other partners in the well, had a pre-drill estimate of "37 mmboe with material upside" for the target of this well, see the text portion of slide #11 of Noreco's latest presentation below:
Galtvort prospect spudded last week
• License PL 348 Norway, Noreco 17.5% -
StatoilHydro operated
• 20 km west of Draugen Field
• Wildcat exploration prospect in known play
• On trend and analogous with recent
StatoilHydro Gamma discovery 25 km away
• Exploration well spudded
20 April
• High chance of success
• P50 estimate of
37 mmboe with
material upside
See presentation at noreco.com
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They were thinking this target would have mostly oil but found gas instead. In the UK, this result is not nearly as unfortunate as it would be elsewhere, winter UK gas futures prices are basically in sync with heating oil prices (about US$18/bbl.). Converting the pre-drill estimate to gas, this would add about 17 BCFE to END's reserves if in fact the sidetrack well meets the pre-drill prognosis. Tough to put a value on UK gas reserves in the ground these days, with the prices there being so volatile, but I don't think too many would quibble with US$4/mcf. This would equate to about half a buck per share in "added shareholder value". And this well is not even one of their "core", "impact" wells.
The sidetrack is not going to take long to get to TD, probably only around 3 weeks per END IR.
1 down, 7 more to go! |
