Investor Relations Don BainI had a chance to talk with Don Bain today(NOG's IR guy) about how the endeavor drilling is proceeding. I will detail some of the items below that are of interest.
-2 years ago Oil was found in the Preeceville drilling. Donald Benson noted in a press release this. I guess an executive decision was to drill deeper and then the drill bit got stuck and the well was lost. So I asked Don if oil is found will they proceed to drill deeper in an attempt to find even more oil and he told me that this time Donald Benson is on the site watching all proceedings. If oil is found at the higher levels they may cap the well and forget drilling to the basement. If the well is productive they would pump it as long as they can and maybe then in the future look at drilling deeper. I found this quite interesting as I didnt really understand that in 2008 they felt they screwed up by drilling deeper with the drill getting stuck shortly there after.
-The first well is their number 1 target to be drilled. They feel that hole #1 gives them the best chance of success.
- Hole one is approx 8 - 10 miles from the 2008 Preeceville site
-Hole 1 and 2 are not right side by side. They are separated by a good distance ie a mile or so.
-News will be put out as soon as its present. With having Donald on site if there is news to be put out immediately it will be.
-If NOG finds oil NOG will look at all options. ie. Partnerships(theres already interested parties), another financing at much higher levels and put in more wells, a take over or merger. I brought up Alberta Star Resources and he tells me that they would look at all options if theres a fit and the parties want to participate. I thought this was quite interesting as I believe Donald Benson has been with NOG for quite some time. Don tells me that business is business and if its in the best interest of the shareholders this is what NOG will do.
- How and why did NOG determine the two holes that are being drilled? Don tells me that the seismic data that they got back suggested that these are the two best holes. Whats involved in Seismic? He tells me that the seismic guys dig down and then pulse shots into the ground. The wave frequency that comes back indicates what is below. The two holes that have been chosen have the best indicators. Interestingly enough the holes are not right on top of the oil seeps as some may think(at least I thought it would be). The spots chosen are in the proximity but they are not right on top of them.
-It is expected the hole will be drilled in the next 7 days. A full 7 days would be if they drilled to the basement ( 1500 meters down). Expect the data guys to come in behind to log/interpret the hole there after. This could take a couple of days or so.
- Don states that NOG will be happy with 10-15 barrels of oil a day. I asked him if they find this much oil from one of their wells does NOG plan to drill more holes? and if economics plays a role. Ie if the well is only good for 2 years maybe its not worth drilling as it costs more to drill than the oil coming out of the hole. He says yes they will drill and they will drill more wells. My feeling from this is NOG really wants a higher share price and they feel if they find something that they will do a deal with another firm. Just my opinion.
-I asked Don about the Hunt Oil guys with the lease agreements with them. He tells me that they have been working close together with the Endeavor project. Hunt Oil guys have looked over all of NOG's data and they are both in agreement on where they are drilling based on the data. After chatting with Don it really gets me thinking that Hunt Oil would be the company that would buy into the Endeavor project.
-Asked about KNOC buying Hunt Oils Canadian Operations and he tells me its not confirmed so until it is its not an issue. Still working together.
Well folks this is all from the top of my head from this mornings chat. If I remember anything else from todays chat I will add later. Tommorow and the days ahead we should see increased volume and I am thinking a much higher share price.