1) IMO in Alberta , a gas discovery of 100BCF or an oil discovery of 10 MM bbls would qualify as a MAJOR discovery. Each of these discoveries would have a present worth of approximately $75MM.
2) Not only do I believe that that we are not dealing with a MAJOR discovery but I also believe there is a strong possibility that only marginal reserves were encountered in the DEEP zone . [ for greater clarity read marginal as ' no reserves' ]
I know you have reported field observations in the order of 3.5mmcf/d on production test ......sorry but I have read all of your posts on the Bearcat thread ...... if those are any indication of your field skills then you should not be surprised that I have discounted them totally in my DD .
One of my grayhairs 'favs'.....Bearcat post #496. [notice all the capital letters ]
"WELL, DON'T BUY THAT CRAP!! THIS WELL'S A REAL WINNER!! I DON'T
CARE WHAT IT IS - MAYBE JUST A CONDENSATE RICH NATURAL GAS
WELL CAPABLE OF LONG TERM SUSTAINED PRODUCTION AT, I'M
GUESSING, 7 to 10 MMCF/D (WITH +/- 700 TO 1,000 BBLS/D
CONDENSATE), OR, - MAYBE JUST A PROLIFIC OIL WELL WITH A LOT
OF SOLUTION GAS THAT WILL BE CONSERVED AND SOLD.
EITHER ONE RINGS THE CASH REGISTER QUITE NICELY, GENTLEMEN!!"
3) Proven Producing Reserves : 0*
Proven Undeveloped Reserves : 0*
Probable Reserves : 0*
* no reliable information is available
4) ?????????? pass
5) 0
6) There is no reason to change my opinion in that respect .
Quote from TUSK 1997 Annual report.......... " intermediate casing has been set at 3420 meters and that a number of potential hydrocarbon producing zones were behind pipe ."
Until these POTENTIAL zones are tested to determine fluid content , productivity and reservoir size , reserves and NAV can not be calculated .
grayhairs ....you know better !!!!!!..........check out your post # 407 on the Bearcat thread.
"They can't hold off testing because they need productivity and other info themselves.Unfortunately, a pay interval that looks great on logs sometimes does not produce very well and sometimes a pay interval may even flow an unexpected fluid. As they say,"S--t happens"!! They can not take the risk of bidding big bucks for offsetting lands to later find out that this well produces only water, or that it produces a lot of water along with some oil or gas, or even that it is not capable of any production. That would cost a job or two, me thinks!!"
I think that we will call this the " grayhairs S--t happens Theorem"
Me thinks I'm gonna go fishing for a few days and forget about Stuff like this !!!!!
Have a pleasant evening........you silly engineer you!!!!!
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