Important Points To Note ...
First, it was nice to at last begin to see the real facts regarding
the concession, and Chikuduk in particular. I expect that the next
few weeks will be very telling indeed on how our positions do, long
or short.
My read on today's news ...
1) This was the evaluation of the Soviet well logs for the No. 1 well
located on the Chikuduk structure.
2) ResTech's interpretation states "hydrocarbon production [KEY word
is production] should [another KEY word] be expected within the
upper Jurassic section from 2,885 to 3,000 meters". The details
regarding net pay, porosity, etc are beyond my expertise; however,
"upper Jurassic" at 3,000 meters is not a deep well IMO. This may
mean lower drilling costs for AIPC. Maybe QDOG can enlighten us
on the specifics of the well log evaluation?
3) Dr. Faris is "pleased that our initial optimism ... has been
confirmed by this evaluation". I would be pleased also, if I had
1.7M shares of AIPN (valued at roughly $6.8M), even after cashing
in about 250K shares for a cool $1M, and knowing that there is a
strongly likelihood of oil "in them thar hills". Yes, "pleased" is
the would I would use.
4) Geotex has finally completed the recording of the first seismic
line over the Chikuduk structure - about 32Km long. In addition,
the data is being "processed" as we speak. The second line of
seismic recording is beginning. Should get a preliminary size of
the structure "in the next few weeks, barring any severe weather".
Sounds like a little more patience (and good weather) is needed,
IMO.
That's it. Overall, my gut says this news is a start in the right
direction. The longs need to have more patience, and the shorts
should think about covering on the next few dips.
Regards,
JT |
