GREY:MGMCF - Post by User
Comment by
OilEngon Jan 14, 2014 11:20am
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Post# 22089071
RE:Application for a Declaration of Significant Discovery
RE:Application for a Declaration of Significant DiscoveryHi Bypp:
Good catch on the DSD. I wish that MGM would make a press release about this.
The application is interesting in that it applies to not only the block they drilled (EL 466B) with Shell last year, but also to EL 474.
They have applied for a discovery license of almost 19 square miles. Assuming that the DSD is similar to the I-77 well drilled would mean that the discovery has almost 2 billion barrels of original oil in place. If they can get even a modest recovery factor of 5% then that equates to about 100 million barrels recoverable.
We should see a decision by the NEB by mid May. The will put an official third party stamp on the Canol which should give credibility to MGM reserve estimates. This should give a potential partner more confidence when bidding for the MGM lands.