Good40 CommentsHello Everyone,
Remember that good40 is kurd30 is hhoc. He will have to answer for this.
POST #1 OF GOOD40:
The low estimate for contingent oil is only 1 million barrels, so there is probably less oil than you think. Why bother
mentioning anything other than oil ? Gas is of no value.
The previous well, tested in 1936 and left for 75 years, produced initially at 4800 bopd, with no record
of information supplied. It was mentioned that the oil column was determined too small to develop, which is probably why no other information was given about the 4800 bopd.
Everything is relative as to the size of the oil column. If it was determined non-commercial originally, then it most likely is non-commercial today.
In 1936, or after WW2, whichever is the case, development costs were the same as today, on a percentage basis. Although a price spike in the commodity pricing initially increases a company's bottom line... it soon shows
a tremendous increase in both opex and capex.
The main focus should be on disclosure... if the company considers it commercial today, then the original
engineering report should be known as well.
If it wasn't for HHdoc, that report showing too small of an oil
column wouldn't be known. Not right in my opinion