Garpal Gumnut
Ross Island Hotel
- Joined
- 2 January 2006
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Can somebody explain the significance lost circulation and fractured resevoir in the above report as I'm not up to speed on oil reports
Garpal
L44-H Appraisal Well
The L44-H well is located in the central lobe of the Na Sanun East (“NSE”) oil field,
approximately 3.25 kilometres north of the producing NS3-D1 well.
Well testing is continuing and a stable rate of 1,265 bbls/day has been achieved. The oil
is good quality at 35 degree API. A small amount of water is being produced varying
from 0.7% to 1.2% as the well continues to clean up and unloads the remainder of the
drilling fluids lost into the reservoir while drilling (“lost circulation”).
The well is free flowing on choke settings of 8/64 inch on the annulus and 17/64 inch on
the tubing. Flowing casing head pressure is 220 psi and flowing tubing head pressure is
280 psi indicating the well may be capable of oil production at even higher rates.
L44-H penetrated the top 14.5 meters of the target volcanic reservoir interval at a depth
of approximately 866 meters. Lost circulation (an indicator of good quality, fractured
reservoir) was encountered at three levels with total drilling fluid losses of more than
1,100 barrels. Electric logs indicated the best volcanic reservoir section yet encountered
in any well over the entire 14.5 meter thick volcanic interval. This has been confirmed by
the excellent oil flow rate.
Nice
its also the first time CVN has become self supporting
i think the market is ready to rerate it now as more than just a junior explorer.... maybe in the next week or so.......its derisked significantly because of this drill and because of it, its suddenly become more likely to go into full production sometime in the future
agree with gumnut, i hope it doesnt fill its gap in the next two weeks when i plan to offload a little
Can somebody explain the significance lost circulation and fractured resevoir in the above report as I'm not up to speed on oil reports
Garpal
At least now, even with a plug and abandon the sp won't plunge. Remembering also we have ann's due in a week or so to fuel this along.
Having a squiz at how POE backed up on the TSX last ngt.. Traded up to nearly $6, before settling down at ~$5.50, on a $5.80 open.... ( up~9% )
Not bad for a stock which opened @ ~$4.20 two days ago.
Supports my 'double high' theory, and that CVN will not pull back Monday after this JV gets re-evaluated on the fly..
"A serious condition that occurs when drilling mud pumped into the well does not return to the surface, but goes into the porous formation, crevices, or caverns instead."
Basically, the more lost circulation, the bigger the 'hole/s' in the ground they've stumbled on/in..
1234, good point about sp behaviour on a plug and abandon being different from now on
re TSX moves, it would have been nice if the sp had settled near intraday highs, rather than mid tho.... but cant complain
So is this good or bad. are the holes full of oil, or is it all crevices going nowhere.
Its all confusing to me . Any articles I can look up e.g. reading oil reports or drilling for Dummies??
Garpal
I can't help but be taken back to forecast volumes. They uncapped 3x what they were expecting - from this one prospect, and on not one more result after this one, it's still undervalued @ 30c. The risk on this stock has diminished. No longer a true speculative imo. The only thing stopping the sp opening high will be traders wanting to load up some more, and have some large sell orders placed to scare off punters. I won't be too worried to see big sell orders placed a stupid prices Monday AM, only to be lifted just before open... ( there's 2mil sitting @ 30c now. )
Roll on next week..
Bit of a chart: re the potential of CVN.
Consider the following when viewing:
CVN needed ~2500 bopd to be self funding
They have ~2700 bopd currently, effectively now cash flow +'ve, and no need to issue more shares for fund raising.
They currently have a success rate in excess of 50%. Looking more like 75% with up to 3X bopd what was expected.
They should see nothing less than 3000bopd total in the next 14 days, maybe up to 3500?
CVN also have results from two more drills coming in the next 3-7 days. L44-G was flowing oil "Some weeks ago" but testing couldn't be completed because the L44G-D1 rig was being drilled next door.
NOW. 'some weeks ago', when reading ann's, means about 2. Have a look at the buying around September 11. Massive volumes considering the announcement had nothing in it except a hint of oil, but who knew how much??
They also have drilling underway with results due in 2-3 weeks from separate locations
The latest drill results not only nearly DOUBLED their bopd output, it took them to self funded status. They also opened at a five year high on Friday.
These results have fast tracked their exploration programme and they have two new permits to explore in the coming months, with 50% and 100% Operating profit from each..
Substantially De-risked, and moving into Broker territory I can see this holding a stable 50c within two months and pushing 40c on hype alone in the next week.. Next year who knows...
Bit of a chart: re the potential of CVN.
Consider the following when viewing:
CVN needed ~2500 bopd to be self funding
They have ~2700 bopd currently, effectively now cash flow +'ve, and no need to issue more shares for fund raising.
They currently have a success rate in excess of 50%. Looking more like 75% with up to 3X bopd what was expected.
They should see nothing less than 3000bopd total in the next 14 days, maybe up to 3500?
CVN also have results from two more drills coming in the next 3-7 days. L44-G was flowing oil "Some weeks ago" but testing couldn't be completed because the L44G-D1 rig was being drilled next door.
NOW. 'some weeks ago', when reading ann's, means about 2. Have a look at the buying around September 11. Massive volumes considering the announcement had nothing in it except a hint of oil, but who knew how much??
They also have drilling underway with results due in 2-3 weeks from separate locations
The latest drill results not only nearly DOUBLED their bopd output, it took them to self funded status. They also opened at a five year high on Friday.
These results have fast tracked their exploration programme and they have two new permits to explore in the coming months, with 50% and 100% Operating profit from each..
Substantially De-risked, and moving into Broker territory I can see this holding a stable 50c within two months and pushing 40c on hype alone in the next week.. Next year who knows...
Hi do you know what the mine life of CVN is?
thx
MS
well by my calcs we should get an announcement today or tomorrow on testing being started on L44G-D1 and L44-G and these results should be out by about the 2/10/07 or next tuesday(ish)...therefore people should be starting to jostle for a position this thurs/friday...
Well cvn travelled nicely today on high volume and up almost 10%...still hoping that testing announcement out tomorrow. Are these guys normally punctual with what they say they are going to do???
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