OTCPK:WSRLF - Post by User
Comment by
Danksauceon Mar 02, 2014 10:17pm
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Post# 22270982
RE:about to give up on WZR
RE:about to give up on WZRI would wait longer.
March is a big month for WZR.
On their Sarqala discovery, they plan to work Sarqala-1 over to achieve production rates of about 10,000 bopd. They are also drilling the Oligocene (so far they've only tested a younger formation, the Jeribe and Upper Dhiban) on the Sarqala structure with their Hasira-1 well. This well has already proven oil in the Jeribe and has a relatively good shot at proving oil in the Oligocene.
WZR has submitted a declaration of commerciality for their Garmian block on which Sarqala lies. Once this goes through with the regional government, WZR will sell their oil. The sale of the 10,000-20,000 barrels of oil per day coming online could fund a significant portion of the field development costs.
At Kurdamir, their other big discovery, WZR announced their intention to conduct an extended well test of their Kurdamir-2 well this March. The results of this test will likely serve as the basis for declaring commerciality for their Kurdamir discovery (with oil production then possible).
Thus, things are moving forward rapidly.
And I wouldn't write the Baram-1 well off. The mix of light oil and water flowed to the surface, so the pressure must be high. Also, if you take them at their word, they straddled an OWC, and the whole structure may have 500 meters of pay. Whether this is worth pursuing is not my call. A positive update on this would boost the share price, a negative result would leave the price unaffected as the market has largely written Baram off (in my opinion).
I also look forward to the spud of Qulijan-1 (provided the rig has moved from the Baram drill site).
Of course, there are lots of risks involved, so be careful. I'm holding my shares. It may get bumpy. They do have a lot of high quality oil, which cannot be overlooked, and favorable terms on their production contracts.