RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Pareto Securities ReportRegarding the water contact, I do not expect it to be assumed at the base of sand in Luiperd-1x! The one feature which attracted Total et al to the area for exploration was the presence of seismic flat spots in the various prospects. These flat spots are manifestations of the water contact in each prospect. The seimic has been calibrated by the drilling results, hence it is highly likely that they already know where the water contact is to within a few metres.
A more significant unknown is whether an oil leg separates the water from the gas, but this would be a nice problem to have. Fluid analysis will help answer this question - saturated gas would indicate the possibility of an oil leg.
The other significant unknown at this point is the condensate yield of the gas. The forthcoming test results should reveal this. Obviously, the higher the condensate yield the greater the value of the gas. I haven't seen any assumptions for this parameter in Pareto's economic evaluation, but they must have assumed something, uness they ignored it altogether.