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Yesterday, Seven Seas announced the Tres Pasos well at 13,000+BPD production. Unusually, they had gas in this deep well when previously they had not anticipated it from previous well in this formation. It screwed up the measurements of flow. Analysts who I trust, tell me this well was a whopper with likely production over 20,000BPD and now there is more street talk of a 4 billion barrel discovery. The gas which has charged this well is believed to have come up from below in another well defined structure some 5,000ft. lower. This is very positive for HEC. Whatever Seven Seas has HEC is believed to have possibly 10X over in potential. However, before anyone bets the ranch, geology has one great humbler, you don't know what is there until a well is drilled. M.Faulkner, the CB, indicated to me this morning, they felt positive about their prospects and that this was only one of 13 large targets out of 30 prospects overall.
The potential is very, very large if the assets are discovered. You must be patient until results of the first Cambulos well are announced, looks like May-June now they want to drill 2 horizontal wells in the Catalina while the rig is there. These folks are being systematic about their approach. Everyone should take heart from this methodical approach.
Best regards,
John |
