WISR Ltd V.WZR

what to do?

[cardman503]

The drilling options listed all have merits. If they go for the shallower anticline near Sarquala, the Upper Far formation target called Mil Qasim, it would give them the third well- and at a much lower cost - and likely some cash flow from production as it sounds very promising, which then would allow them to go back after the bigger prize.
If they sidetrack and pursue the existing targets, it is because it is very enticing from their knowledge of the probable outcome. However that does not satisfy the terms of the PSC which requires a third well this year. But I believe the nr stated that if they sidetrack or redrill adjacent to Kurdamir 1 that the insurance would cover that cost, so both of these would be exciting options considering the down dip flank oil potential in the Oligocene. They are abandoning plans for the recently proposed third well Qulijan 1 because it was going to be a rush job and with the drilling problems encountered so far on the block, you can imagine what that outcome of that would be without a great game plan and full preparations... I strongly favor this decision despite the money spent in preparation to date- not totally wasted as at some point, they or someone else will go after that target.

My guess is the partners will decide they will continue to work Kurdamir 1 and simultaneously prep and drill Mil Qasim as they must meet the PSC requirements of 3 wells. I would venture to say that Talisman may become more active as WZR is likely under resourced to do both.

Still a lot of variables with this play, but it is fascinating- heck I'd love to see a Discovery Channel show about it!! I'd like to write a Hollywood ending, but the script may well end up that way with a super giant discovery the reward for all the trials. Hanging long on this play- taking a bath with an average cost above .75, but not bitter at management despite the setbacks.
GLTA,
your friendly neighborhood cardman503