CGX Energy Inc V.OYL

Question for SheDrills

[geomanx02]

Have been in the oil patch for more than 50 yrs and have dealth with drilling and completing wells with a pressure gradient of 1.00 (and a 3 month blowout).  But have never dealth with anything like what CGX is drilling.

Can you offer an explaination of how wells on this concession can be competed when there are so many thin pay zones?  Do not think it economicly feasible to perf a few zones and produce until depleted and then return to cement depleted zones and recomplete in next set of oil bearing intervals.  Very costly operations and risky to continually go in and out of the well bore.

And, do you have an idea of the drive mechanism?  Water.....solution gas?  am thinking SG...

Would you please enlighten me?  

Appreciate whatever comments you can offer.....

[SheDrills]

First of all, we don't know the thickness of individual pay zones.  Secondly, Halliburton is installing custom completions for Exxon in the Stabroek block so were I tasked with developing Corentyne, I'ld be calling Halliburton in. Laminated reservoirs aren't new...the completion techniques exists.

[mrbb]

Just from your comment, you answered your own question. " Very costly operations and risky to continually go in and out of the well bore."  My guess is minimum double digit million $ just to touch the well. So, i doubt an operator would want to deplete a portion of the net pay at a time and go  back recomplete several times. My guess they would perf as much as they

[Kelvin]

mrbb, geomanx02, They'd do a multizone completion (see link below). My friend is involved with them. I know little about them. They require a rig with a big moon pool to get the subsea trees through, custom designed surface equipment to test the trees and move them over to the moon pool area. The multizone completions strings can be designed in a variety of manners as per link below which

[mrbb]

that's why it's meaningless now to ask how to complete, produce the oil that FEC and CGX had found, they have no more money to even 'touch the well'. As Shedrills said, only the big boys would be interested because they have the deep pocket and existing infrastructure in the area to bring it to reality at a reduced cost due to synergy with their operation. It would be crazy stupid

[Kelvin]

mrbb, I doubt that fec/cgx even have the environmental specialists required to come up with a spill response plan and the resources to be able to handle one. Guyanese courts want a $600 million spill insurance policy from Exxon and proof that Exxon has the cash to cover costs over $600 million. I can't see Guyana allowing anybody but a major opening those wells up to the surface. In drilling,

[geomanx02]

Actually the question about completion is extremely meaningful......potential buyers will be looking at how much of the 210' of hydrocarbon bearing sands can effectively/economically be produced.....thus , if mechanically they can only produce 30% or 50% of indicated pay, then that significantly reduces the value of the concession, then the 210' of hydrocarbons becomes meaningless

[SheDrills]

No one on this board or even w/in CGX or Frontera can answer that question...as we all only have high level information.  Only a reservoir engineer or a completions specialist w/in XOM Guyana or Total Suriname team would be qualified to take a stab at that and based on the posts from the past 2 years, it seems non come here to contribute opinions.  

[hcarbon]

>SheDrills, are you buying at These price? (i am thinking of increasing my holdings, I like the r/r)

[SheDrills]

I've got 2 years of buying. I'm waiting for my reward.

[hcarbon]

Thanks for the reply!

[mrbb]

i doubt the potential buyer of the OYL/FEC discovery want or need technical advices from you, us or OYL/FEC on how to develop the play. Therefore, it is a waste of time to write or read about how to produce this reservoir, especially when none of us here have seen their seismic, geology and fluid data to even start talking about how to do this and that. 

[waitingstill]

Mrbb - he is yanking your (and others) chains leading people down the "but what if" track. I agree with you completely and speculation like that is complete bs to instill unsubstantiated negative thoughts.