IRI spoke to IR today to try and get a handle on how their reserves are calculated. I was advised that the Fekete engineering report is not published on SEDAR. Was advised that the company feels comfortable with the reserve analysis so I guess we will have to take them at face value.
During my discussion about SAGD and Thai I was advised that with SAGD it takes 11.00 worth of natural gas at current prices to produce one barrel of oil and that SAGD requires more wells and infrastructure. When I asked the dumb question about how sure they were that thai would work they said that
1. Computer modelling (which is only that) indicated it should work
2. the Richardson family invested 16 million and had access to information the average investor does not have (signed a CA agreement) and also has access to experts we don't have (at least not me).
3. In situ burning in other projects has been shown to be succesfull although that is only part of the Thai technology.
I asked what they intend to do with Thai if scuccesful and I was told that the company does not intend to liscence it but to use it as leverage to do joint ventures.
Makes sense to me.