Size of the PRIZE WZR is moving into a very exciting stage of their development!!
In the next few weeks the Kurdamir prize will begin to reveal itself. Talisman has long known the potential from the Topkhana well ( tight holed the results) along with the drill cuttings, drilling breaks, mud gas and other indicators on K1. They have now successfully completed the drilling on K2, logging is underway on the 510m of Cretaceous pay zone. The 7" tie back liner will be run and testing begun. With 3 excellent looking zones and potentially 5 separate tests this well may be massive. Remember they feel both Topkhana and Kurdamir share a common oil leg in the Oligocene and they have not encountered any water. These zones are old oceans and the water is usually present to some extent. The fact that they have encountered no water is very excellent news. The KRG will be very interested in the results and should provide a very good timeline for the extended well testing. Lets hope they are able to tie a gas line into K1 to reinject the gas coming off the oil production on K2 . They also know the structure extends off the Kurdamir block. They stated in the June report of a location drill ready on the Qulijan prospect area. The Eocene and Cretaceous once tested could vary well double again the reserve numbers.
Mil Qasim - M1 will need a frac treatment. It has excellent potential across 4 intervals. Once the well has been fraced it could produce 4000-6000 bbl/day. The well has excellent pressures but low perm and porosity. Once the frac results are know future wells could be drilled horizontal and multi stage frac liners run to exploit the reservoir more effectively.
Sarqala is a diamond in the rough, drilling challenges, restricted well bore length,well bore damage and hole size have reduced its flow potential yet its capable of 9000bbl/day with approximately 1 million scf/1000bbl oil. Once the gas is tied in for power generation it will provide another very good revenue stream. S2 and H1 are basic development wells in the Jerebi zone and H1 will drill down to test the Oligocene. Both wells are 3km either side of S1. lessons learned on S1 should provide enough knowledge to successfully drill both wells effectively. Both wells should have the potential of 15,000bbl/day with out the restrictions of S1.
So the big boys need to do the math and see the real value here. You have a huge gas and condensate zone, multiple huge and potentially massive oil zones. Multiple prospective oil and gas structures to explore and the company present value barely over todays entrance price.
The political side will sort itself out, both sides need and want the resource revenue. The posturing will end and a deal struck.
Talisman will cut a deal with the KRG, most likely on a production revenue reduction to cover the block payment.
The Garman partner will come in with the huge capex bucks and operate.
If the planets align over the next 12-14 months the pipeline will be in operation, WZR will have 40,000-50,000 bbl/day production, natural gas revenue??, political stability, 2 partners operating and a very healthy stock price of $8.00 +.
Lets hope the brass at WZR hang in their without falling to the pressures from the big boys to sell early.
Regards to all
Drillex