RIK, I can tell you that the production test from a DST would be about $40M. I am not sure about the rest of the casing, depends on grade and how much, but it would certainly be in the hundreds of thousands. That is why, personally, I do not understand why the company would not want to run a DST. There is, as Grayhairs suggested, a safety issue and level of risk associated with performing a DST on a very sour zone. However, considering what is at stake, I would lean towards having a test. Another individual may decide not to perform one. It is also, to a degree, dependent on the operating practice or policy of the operator and to a degree, a call made by the drilling engineer/sup't. This probably does not help out alot... but different companies have different ways of conducting business.
mike |
