Yesterday, we had indications of very low gas shows (talk to a technical guy about gas shows - 10 000ppm/50 units is well below commercial gas).
Today, we have sidewall cuttings indicating similar characteristics to a producing gas field ie they have permiability and porosity.
Now, if the reseviour is gas charged and the rock has enough permiability to allow gas to flow, then we should have got higher levels of gas yesterday, right ?
This sounds paranoid and cynical, but note that the 3D work program is for early '05 - or after the MOGOs expire.
If the MOGOs are in the money, they get excersised, and Moby is still in play.
If they arent, they dont, and it isnt.
Therefore, the companies do what they can to ramp up a disappointing result - 3D will cost the partners about $150k each, so it's worth doing just to maintain the polite fiction that Moby-1 worked.
Ian Whitchurch
MOG Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
