RE:A question to the wise. Does the oil find increase the...
I listened to Paul Bay on a Proactive interview today and based on the language he used this first test is on a separate thrust sheet which had "some of the crappiest rock in the wellbore". Thus the surprise when it flowed oil. He said that the upper reservoirs were much better quality in what he referred to as the gas play. He also indicated that these are two separate systems and that the tested zone is a new play and not previously drilled. In response to your question, I had the over-arching impression that he was very confident that the upper zones are hydrocarbon charged and Paul is expecting gas. I'm sure they will be sending the oil off for geochemistry as there is the possibility that this oil is sourced and migrated from the Cretaceous which lies below. It could also be an oil leg on a large hydrocarbon column with gas above although Paul Bay does not describe it that way. Only time will tell but clearly, this result is very significant. Paul Bay is currently in London to brief the analysts so expect a flurry of updates in the next week.