OTCPK:WSRLF - Post by User
Comment by
TangoPrinceon Aug 24, 2013 7:33pm
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Post# 21695529
RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:COACH - HOUSE POSITIONS
RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:COACH - HOUSE POSITIONSsuper: All things being equal, I agree that DST 3 and 4 should flow like K-2. However, there are two factors which concern me:
1) The press release specifically states that the fracturing in K-3 was less than that in K-2. Since the extent of fracturing is positively correlated with higher flow rates, this would seem to indicate that we should not expect a higher flow rate at K-3 than at K-2. The exact press release quote is below:
""DST #1 and #2 were conducted in the lower part of the Oligocene reservoir which exhibited poorer reservoir characteristics (including fewer fractures) than the main porous zone tested in Kurdamir-2"
2) If you look at the corporate presentation for the Kurdamir structure, you can see how close (in terms of relative depth) the water contact zone is at DST #2 to the lowest known oil contact at K-2. If DST #2 is, in fact, part of a transition zone from oil to water, it could mean that the tests at K-2 were simply "good luck" in the sense that we hit an oil accumulation inside a transition zone, when in fact most of the surrounding area at simiar depth is a mix of oil and water. If this is the case, it would not be surprising to find a high mix of water at DST #3. I believe this is is why some people are concerned about a possible decrease in contingent resources.
Having said all of this, I don't really care what the flow rate is at K-3. If we want a high flow rate, we can simply drill horizonatlly and capture all the fracturing we want. But, since this is an exploration well, not a production well, the drilling is vertical.
But with regard to finding water at DST #3, I would like to hear some good arguments as to why this scenario might be unlikely. At the moment, I see it as a real, perhaps 20%, possibilty.
TP