Australia's largest stock trading and investment forum Australia's #1 stock forum

FPL

8.33%

0.7¢ fremont petroleum corporation limited

Ann: Pathfinder Horizontal Well Delivers Strong Oil & Gas Flows, page-5

First 5 Last

Share
Profile

Follow
Dianella 68

717 Posts.

24

13/06/18

12:33

Post #: 33678538
Share

Originally posted by Wise_One ↑

Game changing ann in every sense of the word.

There are 2 separate bullish sides to this:

Oil Production
The Niobrara Formation has been intersected (at depth) for the first time to my knowledge & has demonstrated significant oil production which is currently flowing at 50bbls / day

This is significant when put in to context that the average well production per day across all 25 producing wells is c. 3.6 bbls/day.

So this one well is equivalent to 14 existing well production & at 50 bbls/day will add c. 50% to the monthly production number which in May was 3811 bbls of oil.

It would be rather easy for the company now to drill deeper in the existing wells to reach the Niobrara formation and vastly increase the production profile of each well from the existing c. 3.6bbls/day to c. 50bbls/day

A truly transformational leap in the production profile & the exponential growth which will excite punters.

Gas Flows
This first hole in to the Niobrara formation also showed excellent gas flows being 1.6 million cubic feet of gas per day (mmcf).

This is a commercial level of gas flows & will open up the formation to enable the value creation that has been independently assessed as 220 BCF as a P90 Contingent Resource (P90 is 90% probability... convention is to use P50).

This is huge & the fact that they are exploring additional ways to monetise the gas (apart from the conversations with primary gas users) is bullish as it will ensure that any primary users that have begun / stalled talks for offtake agreements may get a wriggle on as the company is now happy to feed the gas in to the Kinder Morgan pipeline should local industry continue to drag their feet.

Compare the resource (220 BCF P90) & more importantly the flow rate FROM ONE WELL (1.6mmcf/day) against some of the other domestic O&G companies & their market caps... you'll quickly find that many of them are valued at well over 50m-100m mkt cap on our market.

As with most things, it takes time for the information to be digested & spread in the market.

I was very bullish on the story before today. After reading these impressive figures from the Niobrara Formation I can hardly contain my excitement.

Expand

I think you should try to contain your excitement.
This is the only horizontal well they have.
It was drilled 5 years ago and cost millions to drill.
Poor returns for such a costly drill. AIMO.

Jim.

FPL Price at posting: 0.9¢ Sentiment: None Disclosure: Not Held
5 Upvote

0 Great analysis

Reply

Top Stories

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

ASX Market Close: ASX closes above 8,400pts on green Wednesday | Nov 27, 2024

ACW

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

There are more pages in this discussion • 25 more messages in this thread...

First 5 Last

Add FPL (ASX) to my watchlist

Ann: Pathfinder Horizontal Well Delivers Strong Oil & Gas Flows, page-5

Top Stories

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

ASX Market Close: ASX closes above 8,400pts on green Wednesday | Nov 27, 2024

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up