wild guess, page-36

Production increases due to the reworking of Lidsey won't add much value without increased reserves - going from 85 BOPD to 200 will bring forward cashflow, but if the Lidsey reserves stay at 128000 then the well will deplete quickly. My calcs equate to about 4c per share for current UK production (@10% discount rate). If production is increased to 200 BOPD, this might only generate 1c more per share if there isn't a commensurate increase in reserves.


Chuti, any successful drilling would increase the recoverable reserves. Each oil field has total reserves which consist of recoverable, potential and possible (excuse me if I haven't quite got the terms correct, going on memory here).

Recoverable is what they estimate can be extracted economically from existing wells.

Potential is what they estimate could be extracted with further drilling/workovers, etc.

Possible is what is presently uneconomical to extract.

The figure you quoted is recoverable reserves from Lidsey #1. Midmar estimated P50 potential reserves from Lidsey #2Hz plus recoverable reserves from Lidsey #1 as being 0.59 MMbbls.

Also the 85 bopd is the combined existing production for Lidsey and Brockham. Prior to purchase by KEY, Midmar indicated that Lidsey was producing 40 bopd.


The field currently produces 40 bopd of 37 API oil from one wellbore and contains remaining audited P50 reserves potential of 0.590 MMbbls. Presumably the recoverable reserves would be higher than this if the flow rate is closer to 500 bopd than say 200 bopd.

Schlumberger simulation study in 2002 predicts that such wells (horizontal) should be capable of generating up to 500 bopd after an initial flow rate that could exceed 1,800 bopd.

http://www.ezdataroom.com/pdf.php?id=118

So presumably the estimated production from Lidsey #2Hz would be in addition to the 40 bopd from Lidsey #1 and the 45 or so bopd from the Brockham field.