RE:RE:RE:RE:RE:RE:RE:Wouldn’t they already know results from primary target now? Good point!
Based on the press release yesterday, I do think there are still three separate independent objectives in play as they released the seismic attribute maps of all three. Note, this new seismic line includes a clearly visible DHI (direct hydrocarbon indicator) located right square in the middle between the shallow and deeper Santonian objectives (sideways 8 - thank you dragonfly)!
We can calibrate this based on what we have heard and learned from Apache/Total when they decided to extend the Maka Central well to test the deeper Santonian and Turonian - which they also reference as independent and separate. Preliminary fluid analysis (according to the CEO John Christmann) suggests these deeper objectives will contain high quality oil.
If you have questions - get them in before the meeting scheduled for tomorrow morning.
Outside of the price volatility experienced yesterday and downward trend in the share price over the past two months - I am encouraged given the press release yesterday. I have been in the industry for too long to think there is someone out there who already knows the fate of Kawa when we have not even drilled through the Santonian or evalauated the campanian.
We now see the potential size of the campanian and deeper Santonian objectives on Kawa. On the recent Apache earnings call Doug Leggate (BOA analyst) referenced the Sapakara appraisal (3 mile step out) encountered ~30 meters (~100ft) of pay in the campanian and suggests a potential recoverable resource size of 500mmboe. That's just the campanian.
Now, we also know that when Apache drilled Maka Central (Kawa's direct analogue) there was ~150ft of condensate and oil pay in the campanian and ~240ft oil pay in the upper Santonian. So, thicker pay.
So, taking into account the amount of pay encountered at Maka Central's (Kawa direct analogue) and applying those to our new handy attribute maps - the overall resource size of all three prospects could be in excess of a billion barrels of recoverable resource.
There is a lot of appraisal work that need to be done - but, the possibility of encountering stacked pay in these three separate objectives could the first step of validating more than a billion barrels of recoverable oil that are part of the "Mega East Fan Complex" referred to by CGX/Frontera.
Sounds pretty exciting and encouraging. We now await results. (1000mmboe * 6.5/bbl * 67%) / 340m shrares out = US $12.81
You make those that have been waiting on the sidelines pay a premium for your shares!