OXX 5.26% 3.6¢ octanex limited

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  1. 1,764 Posts.
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    Rivermore.

    Should that be Woodside's Webley 1A that was drilled in 1998. It only got to just over 3000m and was still in the early cretaceous. I believe that it was abandoned when they got amongst over-pressure (but not significant) gas.
    One of the design features of this Win well was that it is a 'deviated exploration well'. The deviation part of it is, as I understand it, was to avoid this area where Woodside had problems and they have successfully done so. I posted earlier that it was positive wen they got past this area seemingly without problems.
    I have always said that it was 'not if' they would find gas, but how much and whether it was commercial. I said that because of the Parker 1/ST1 drilled in 1979, was drilled to 4736m and 'intersected over 200m of elevated mud shows within the Triassic'. This was interpertated as being in the Mungaroo. It was never tested because an anchor chain broke. With the modern 3D, Parker was shown to be off to the East of the main structure. This augurs well noting that they have found 40m of net 'play' from 3614m to 3721m. That is higher up in the main play.
    Good enough already for Santos to call it a 'Discovery' and talk about 'potential commercialisation', all good. As you say the icing on the cake will be these lower intervals. The well was described as, 'to test at least four potential target zones' down to about 43-4400m. This is a large gross interval and if these lower sections came in, as you say, this could be a large discovery. The RFS report had a high estimate of 4243BCF Gas Initially in Place with a 'Recoverable Resource' of 3394BCF and significantly 156mmbbls condensate. We could easily approach or even exceed these figures I believe.
    Mitigating against this is that they encounted this over-pressured zone at about 3803m necessitating the 'shut in' and drilling the Side Track. It does mean that these zones are not in communication with each other, beyond that my knowledge gets sketchy. Also I didn't like the fact that they mentioned in Report 11 'gas and water influx into the well' when they broke into this over-pressured interval. Any mention of water is a real passion killer.
    Notwithstanding Santos and OXX (who are stumping up up to 5m) seem determined to have a look lower down, so there must be some confidence. If they thought that they had found the gas/water contact presumably they would save their money.
    I'm sure that they will drill into/through this over-pressured interval without too much trouble now that they know that it is there and are prepared. Should be an interesting week.

    Please, can anyone please confirm that the NCB still is upright and on site at Palta. I am worried that the next announcement will be that it is to be abandoned/scrapped and towed to Korea to be broken up, due to extensive corrosion from lack of use.
    Somebody must know where this well at. Suspiciously quiet IMHO. Not even a rumour that I can find. Even with the delays I believe that they would have been in the target intervals for some time. And in the back of my mind is the fact that, if they have found something Shell has lots of reason to be very coy.
 
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