Petro Rio S.A. HRTPF

Good post by Ooleum on IHUB

[VanWilder1]

	ooleum			Thursday, June 06, 2013 6:02:10 PM
	Re: VanWilder post# 574			Post # of 575

Although bullish on Wingat, and rightly so; it was 2nd best thing to being commercial, I did find it odd that they went for Wingat first.

Sure, Wingat had a better pos ~28%, but its volumetrics are a quarter of murombes, whose pos is still a respectable ~23%.
If only half of wingat was discovered...~350m barrels, it's already close to nonecconomic. Different case for murombe; "only" 1.4billion, is still a hefty find.

Not only that, but more often that not, the larger offshore finds are typically turbidite systems and not carbonates (wingat). Both baobab and murombe are turbidite systems.

Of course hindsight is a wonderful thing...but I prefer murombe to wingat, especially knowing there are 3 source rocks of up to 200m thick

On a side not, a best case recovery of 7m^3 million of gas in amazon, is huge (so much so, that I have rechecked my sums numerous times). That's nearly 135million cubic feet a day net to HRT... 20,000BOE a day! (That's why credit Suisse happily loaned money for Polvo field)

That is all

Ooleum

[WESTCOASTOIL]

How can 350M Barrels ne non economic?!!

[Ogopogo007]

HRT Mngmnt already stated why Wingat was drilled first....was the closest to Walvis Basin. Why tow a rig up and down the coast?   Drill baby drill

[landmann]

Sorry - a rather naive post imo: Wingat was selected for obvious reasons: good seismic, highest probibility for success and closest to Walvis. The Credit Suisse deal might better be called a “lease” as the terms were rather poor and probably totally ignored the Amazon gas prospects.

[REBaller1]

It selected to be first because it was the closest.  Wagner Perez stated that in one of his interviews.  IMO, the Credit Suisse deal was likely based on the Polvo fields production.  Bank don't like to loan on unmaterialized assets.

[robnhood]

"it was the closest.  Wagner Perez stated that in one of his interviews.  "  Was that before or after the well was drilled?

[Oiljars51]

Wagner stated this before Wingat was drilled. 

[robnhood]

Thanks