RE:RE:RE:RE:RE:RE:RE:RE:RE:Bounce Yeah I've mentioned linear algebra a few times hoping that I could draw some reservoir experts onto this board. No luck. In linear algebra you learn that if you have more unknowns than equations then you can have an infinite amount of non-trivial solutions as opposed to the trivial solution.
Applying that to this play you can have a particular result caused by an unfinite amount of inputs or unknowns. Like say a 15.4 ppg kick in the Campanian can be caused by an infinite amount and combination of reservoir properties (rock type, porosity, permeability, reservoir size etc). It could simply be a high pressure, low volume kick because of bad permeability yet great porosity for instance.
So you need to find more relationships or equations in order to identify unique non-trivial solutions regarding boe reciverable. I don't know how that can be done without testing the well flowing it through various choke sizes. The reservoir engineers and earth scientists merge this with their other data sets in order to arrive at a reliable estimate of boe recoverable. I know zero about how they do it other than my friend, a reservoir engineer in Calgary, says that it's a very involved process requiring substantial computer processing power.
So my question is on what basis would any company JV with fec and cgx absent much more information? Yet the sp stability suggests that enough unknowns have been answered to bias the probability of commercial success to a favourable level. Is there such a thing as a conditional JV? For example, if no well testing is done but MDT, core, log info meet certain criteria then some sort of conditional JV or arrangement can be agreed to in order to pick up the cost of testing the well? And if testing proves a commercial find then another JV can be arranged based on other criteria? Just throwing this stuff out there cause I don't have a clue on how this works.