Clarinete 2ST tests 33% lower rate than Clarinete 1 Clarinete 1 Tests 45 MMSCFPD (7,947 BOEPD) from Two Zones from the Upper and Lower Cienaga de Oro (“CDO”) and then the Clarinete 2ST Tests 30 MMSCFPD (5,316 BOEPD) from the CDO (no specification on Upper or Lower). This test rate is 33% lower than Clarinete 1.
Tough to say if this is good or bad news. On the surface, it doesn't look great considering the Clarinete 2ST was drilled in the sweet spot of the discovery. However, maybe CNE just decided to conduct one test over the CDO net pay interval instead of testing the upper and lower zones of the CDO like last time.
A positive takeaway from the well test is the new Tubara Formation that discovered was not accounted for in the reserve report or resource report.
Clarinete 2ST also encountered dry gas within shallower sandstones of the overlying Tubara Formation, with four separate sandstone intervals exhibiting strong gas shows while drilling. Cased hole logs identified 135 feet of gas pay with average porosity of 17 % and neutron density cross over, which is an indication of the presence of potential gas. Flow testing of this interval achieved a final rate of 4.7 mmscfpd (825 boepd) of dry gas. No reserves or resources are currently booked in the Tubara.
Appraisal well results shouldn't move the stock price because they don't really impact reserves and any additional gas behind pipe in the ground isn't really worth anything unless they can monitize them and the infrastructure to do that would probably take 2 years to put in place.