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CUE 6.5¢

long read-any comments

  1. The-fox

    31 Posts.

    Summary of what we know
    - Top of Jeruk prospect at approximately 4800m, bottom of target at 5100m (Santos Exploration Presentation), volumes 227-584 million bbls oil equivalent.
    - Jeruk prospect is 20km east of ExxonMobil's BD field, a 184 million bbl in-place oil, 847 bcf in-place gas field awaiting development (Cue Presentation & IHSE)
    - Reservoir probably penetrated shortly after setting intermediate casing at 4746m (STO 5/2/04)
    - Ran wireline logs after reaching 5027m (19/2/04) then proceeded to test the well, letting hydrocarbons flow to surface (STO 26/2/04)
    - The open hole test recovered oil, gas and water. Good news, it means Jeruk is not a dry hole. Flow rates, from scout sources, sound good.
    - Note they did not test from one "reservoir", rather they tested from a long "open hole" section, complicated by the stuck drill pipe in the hole.
    - The test warranted a deepening of the well, an expensive fishing operation AND an attempted sidetrack. Were the wireline and test results that good to warrant such costly operations?
    - They never reached planned TD of 5250m yet AGAIN ran wireline logs (STO 25/3/04) from 4876m over the reservoir interval that they tested prior.
    - STO announced plan to P&A, but this is normal for ALL exploration wells, discovery or otherwise (see Chinguetti/Tiof/Banda for HDR - P&A does NOT neccesarily mean a dry hole).
    - If Jeruk was a dry hole, they would have stopped drilling shortly after reaching 4800m and not tried to flow test, sidetrack and fish for the stuck pipe.
    - Therefore the game is not over - Santos may have made a good oil and gas discovery and punters may like to hold ground.
    - Hopefully more details will be revealed by STO/CUE.

    In other news....
    - Novus has exploration licences in the Jeruk area and therefore may contain Jeruk-like prospects? (speculation)
    - Medco (Santos partner for Jeruk) is involved in a takeover attempt for Novus (Google)
    - Medco increased bid to unknown amount on the 29th March 2004 (Google)
    - Santos are also bidding on Novus via Sunov, effectively competing with Medco, their own partner in the Jeruk well.
    - Are Medco and Santos/Sunov, armed with Jeruk well results trying to snap up Novus acreage around Jeruk? (speculation)
    - Could Santos be considering a Cue takeover? (speculation)

    ..and finally,
    -Santos release intention to acquire 3D seismic data in Jeruk block, normally done to further analyse a discovery and not done after dry holes. (IHSE)


    any comments

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