I thought I should post this here as well, as ADVFN where the first part of it arose.
I have after much debate over the past 4 days decided to share something that everyone else has missed.
If it wasn't for the infamous post 559, that's no longer with us, I probably wouldn't be sharing this information until a later date.
Why am I sharing it some will ask, the reason is this, it is the type of information I'd expect a paid service to pick-up on & comment on.
As all the info is in the public domain for anyone to unearth, although it takes some O&G knowledge to reveal its true significance.
I am still very annoyed at the info post 559 contained in those 3 paragraph's (3,6 & 7) that should have been past on to all investors through the right channels not via broker briefings or such like. Some of that information was without question price sensitive & especially in conjunction with the following info.
A couple of people noted the oil having an API of 39 degrees
If they had looked back into the LP2 records, they would have found the liquids there had an API of 51.6 to 51.8 degrees.
I'd call one crude oil, the other condensate.
My first thought's on seeing the 39 degree number was that, it was so far away from the LP2 one that, it meant they were actually in separate mini-basins or were separated by a deep fault.
However on talking it through with my geo friend, that actually turns out to most likely not be the case.
You can in fact have variable API numbers within the same oil field. Its also worth noting that each oil field is unique, petroleum geologists, can tell from a unidentified sample which oil field it came from because of the individual properties it has.
What we do know from the data is that the productive sands at VOS#1 do not extend to LP2.
Indeed it would appear that the Kara Farms mini-basin is acting as its own refinery.
If you look at the various geological research papers on AA Wells & information in old PANR presentations, you'll see that the heavier, larger grains of sand will have worked there way to the bottom of the mini basin.
As the hydrocarbons migrated from the source rock below, they will have passed through the various "sand dunes" & silts etc, deep in the basin and where there were traps they would build up over time. Trying to escape upwards all the time.
You'll have heard of heavy oil fields where the oil is like 15 to 19 degree API and hard to recover (ie get flowing), because it is made up of larger hydrocarbon atoms. The cap on top of these types of traps was porous enough to let the small lighter hydrocarbons pass though it & migrate to somewhere else. Thus leaving just the heavy ones.
It seems that this has happened at Kara Farms & VOS#1, only here a lot of the lighter oil didn't escape and we've been left with a nice grade of crude oil.
As other wells are drilled at Kara Farms, who's sands are higher up than those found at VOS#1 we'll likely see an increase in the API number of the liquid found in them. We may find that the oil percentage of the overall hydrocarbon mix starts to fall as we move higher also.
So if as an example Vision/PANR drilled a new well lets say 1.5 miles away from VOS#1 and the productive sands there were around the same depth as those found at VOS#1, but the API number was different, then its very likely the sands are in completely separate sand dunes (petroleum geology would confirm this) so the 2 wells would be producing from 2 distinct reservoirs (although we could find as a further example that VOS#1 has 3 productive sands & one of them extends that far, in which case both wells would be draining the same reservoir [one sand] but not the others.
39 degree API oil is very close to that of WTI, so we should get very close to the price WTI sells for with VOS#1 production. 51.6 degree condensate sells for a lot less.
I hope that description makes sense to everyone.
LOTM
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