Proving a Petroleum System in Place is a LOW BAR to beat....RECO is drilling 3 holes to prove that their is a petroleum system in place.
The aeromag data, which is pretty accurate, confirms that we have a basin that is 30,000 feet deep.
A drill hole on the basin next door to us found: RICH, DARK, ORGANIC SHALE ROCK
The drill hole confirmed a Permian period formation for the rocks.
Our goal is not to find oil, but to prove that there is a petroleum system in place.
Our neighbors basin was only 6,000 feet deep and hence the rocks did not cook enough the rich, dark, organic shale rock in order for oil to flow into conventional oil traps.
But from our end we are 5 times deeper and under that intense pressure rocks would be crushed and fry.
Is there any reason to believe that the RICH, DARK, ORGANIC SHALE ROCK found by our neighbor would suddenly disappaear when on our land? Why would the permian formation suddenly stop at our neighbors basin?
Would it not be more appropriate to believe that the permian formation continues on our land, and that the rich, dark, organic shale rocks would be that much more richer, darker organic shale rocks?
The fact that we must only prove the rock source is a very low bar to beat. With the right rock we can infer that there is a Petroleum system in place and, then it will be up to the majors to discover the converntional traps.
We have the easy part of this project.
The fact that price is holding up nicely, that we are indeed on an upramp, considering that drillers on the ground can already visuallly inspect the rocks and that there is no leak of dry hole, tells me that we have a PETROLEUM SYSTEM IN PLACE.
MPO