RE: EAGLE SHALLOW This is a follow up to my previous post regarding potential merits of Eagle Shallow. I have been looking through several past presentations on Tullow's website and wanted to share what I found. Note, I tend to believe that any geologial guidance or opinions that come directly from Tullow, especially from Angus McCoss, should carry a tremendous amount of weight. The exploration success rate Tullow has had over the past 5 years speaks for itself.
Shareholders of CGX should find great comfort in the fact they are in the same circle as those that are considered the best in exploring and opening up new hydrocarbon basins (i.e. Tullow). All the information presented below can be found on Tullow's website at https://www.tullowoil.com/index.asp?pageid=353.
1. March 10, 2010 : Tullow gives a presentation - entitled "Tullow Oil - 2009 Full Year Results" - note slide 30. In this presentation Tullow names each prospect / lead along the French Guiana basin and is identifed as: Teritary, Paleocene (i.e. Eocene), Upper Cretaceous (i.e. Maastrichtian), Cenomanian / Turonian, or Aptian / Albian.
Moreover, Tullow also states on slide 30 that "prospects in Guyana are emerging in the Upper Cretaceous & Teritary levels."
2. August 25, 2010: Tullow gives another presentation - entitled "2010 Half Year Results" - note slide 25. Tullow reiterates "prospects in Guyana are emerging in the Upper Cretaceous & Teritary levels."
3. March 10, 2011, Tullow announces the spud of Zaedyus.
4. August 24, 2011: Tullow gives presentation - entitled "2011 Half Year Results".
Tullow does not reveal anything about Zaedyus success during this presentation. However, if I recall correctly, an analyst at the presentation inquired as to why Tullow had already scheduled a follow up well in French Guiana called "Bradypus" - (as listed on slide 34). Interestingly, Tullow was planning on drilling the Bradypus prospect within the year - which in deepwater is a pretty short time frame. My initial reaction was that Tullow may have found something in drilling Zaedyus that possibly led them to high-rank the Bradypus prospect.
Another piece of information that should grab your attention - Bradypus is listed as a 700mmboe sized prospect.
Recall, from the previous presentations Tullow listed "Bradypus" as a Paleocene / Eocene prospect - so we at least have some knowledge as to what Tullow was interested in following up on...
5. September 9, 2011: Tullow announces Zaedyus discovery. Tullow states: "This result reduces the exploration risk associated with Tullow's prospect inventory offshore French Guiana, Suriname and Guyana. An appraisal programme and extensive follow-up exploration activities will now be considered."
Wait a second...it seems on August 24 (17 days earlier) - Tullow already planned to move forward with a follow-up campaign with Bradypus. Hmm..
Based on the time frame above - Tullow may have drilled through the Paleocene / Eocene section before their presentation was given on August 24.
6. March 36, 2012: Tullow gives presentation - entitled "2011 Full Year Results". The follow up campaign for Tullow in French Guiana includes 3 wells: Zaedyus appraisal / exploratory, Zaedyus-2 appraisal, and Dasypus-1. Looks like Bradypus has been removed from the follow-up campaign, at least for now.
In summary / closing:
- On multiple shareholder presentations - Tullow gives its endorsement to Guyana's Upper Cretaceous & Teritary play. This should bolster some confidence among shareholders as it relates to CGX's Eagle Shallow.
- At one point in time Tullow was going to follow up drilling Bradypus (Paleocene / Eocene prospect) in French Guiana. Even though Bradypus is not mentioned in the most recent Tullow presentation - it is interesting to see Tullow continue continue to identify Paleocene / Eocene propects along the South American margin.