Oil exploration in Puntland, Somalia

[Burn Notice]

General Duke;831403 wrote:

It's the greatest single project in our recent history & so far so good.

All going well Duke

 

Shab Nth is expected to have a bigger payzone as Shab 1 feeds into the structure. Can't help but feel that all parties are downplaying the

success of the first drill due to the dispute with the TFG regarding the constitution, specifically articles relating to the management of natural

resources that continually keeps popping up

 

The success of these 2 wells will open up the whole region with major oil companies coming in and providing infustructure and employment opportunities to the communities

 

How do you think the impasse b/w the TFG and PL will be resolved?

[General Duke]

^^^Burn Notice, thanks for the update.. Reading between the lines, this project has been a success. Finding Oil in the first well is quite remarkable and now we await the second drilling in Shab Nth.. I remember a time when naysayers used to say there was no Oil exploration at all or that the region was not secure enough. Now its they have found no Oil and the drilling has stopped. We have all come a long way.

 

I believe all issues will be ironed out in the meeting to be held in Addis this week. The signatories to the road map with the international community will all be attending. Top of the agenda are the 36 points that Puntland would like to be revised.

Don't believe the hype, its not as bad as some are reporting..

[Libaax-Sankataabte]

These are exciting times indeed.

 

It makes perfect sense for HNR to move the rig to Shabeel North while waiting for equipment to perforate the now cased Shabeel-1 well for flow testing. It is not easy to ship high value perforating unit to a nation under arms embargo without UN approval. Drilling is a cash burning exercise and I truly believe the 12 to 20 m net pay on the Jesomma sands (Upper Cretaceous) is well within the pre-drill estimates if commercially flow tested (this shall be as soon as the units arrive). Horn made the right decision to not wait around burning valuable cash (digging to a 3800 depth). One particular great news in all of this is that the Shabeele North's spudding will be slightly faster and future wells de-risked. The operator’s task is now to just confirm the continuation of Jesomma sands net pay within the new target depth of 2,400 m at SN without going to previous depth. I am also encouraged by the fact that 2-D imagery already shows the Jesomma sands section at SN is much thicker ... which will be good news if confirmed.

 

[MoonLight1]

Libaax-Sankataabte;832019 wrote:

These are exciting times indeed.

 

It makes perfect sense for HNR to move the rig to Shabeel North while waiting for equipment to perforate the now cased Shabeel-1 well for flow testing. It is not easy to ship high value perforating unit to a nation under arms embargo without UN approval. Drilling is a cash burning exercise and I truly believe the 12 to 20 m net pay on the Jesomma sands (Upper Cretaceous) is well within the pre-drill estimates if commercially flow tested (this shall be as soon as the units arrive). Horn made the right decision to not wait around burning valuable cash (digging to a 3800 depth). One particular great news in all of this is that the Shabeele North's spudding will be slightly faster and future wells de-risked. The operator’s task is now to just confirm the continuation of Jesomma sands net pay within the new target depth of 2,400 m at SN without going to previous depth. I am also encouraged by the fact that 2-D imagery already shows the Jesomma sands section at SN is much thicker ... which will be good news if confirmed.

 

LSK you seem to be into this, is this your field of study? most of us can't figure-out this drilling lingo and terminologies.

[Burn Notice]

General Duke;831980 wrote:

^^^Burn Notice, thanks for the update.. Reading between the lines, this project has been a success. Finding Oil in the first well is quite remarkable and now we await the second drilling in Shab Nth.. I remember a time when naysayers used to say there was no Oil exploration at all or that the region was not secure enough. Now its they have found no Oil and the drilling has stopped. We have all come a long way.

 

I believe all issues will be ironed out in the meeting to be held in Addis this week. The signatories to the road map with the international community will all be attending. Top of the agenda are the 36 points that Puntland would like to be revised.

Don't believe the hype, its not as bad as some are reporting..

Thanks Duke

 

I'll never understand why PL has so many naysayers..we can already see the tangible benefits the exploration has had on the region which will only exponentially increase as more and bigger companies invest in the country..oh well, let hate consume them while PL gets on with the job at hand that is making a significant difference to the people

 

Good to hear you think things will be ironed out..it's the only issue holding things back IMHO

 

ATB

[ElPunto]

Up to 280 million barrels from these 2 wells isn't a huge find. Will these tests allow them to extrapolate reserves for the whole Dharoor block? Presumably a big find in the range of a billion + barrels would have spurred more interest and financing that would be boon for these companies and this region,

[Burn Notice]

ElPunto;832035 wrote:

Up to 280 million barrels from these 2 wells isn't a huge find. Will these tests allow them to extrapolate reserves for the whole Dharoor block? Presumably a big find in the range of a billion + barrels would have spurred more interest and financing that would be boon for these companies and this region,

They will have a far better idea after the second drill

 

It's the first successful drill in the area in 50 years and when you consider that only 1 in 10 drills hit oil I would say it's not a bad start

 

It's just the beginning ...the elephants will be found now that they know they have an active petroleum system present

[ElPunto]

^Why did the stocks get hit though - were there whispers of something huge coming out? Or had the companies hyped the results that would be found? The market reaction made it seem as if nothing much was found.

[Burn Notice]

ElPunto;832043 wrote:

^Why did the stocks get hit though - were there whispers of something huge coming out? Or had the companies hyped the results that would be found? The market reaction made it seem as if nothing much was found.

Bigger issues at play here IMO

 

HRN AGM end of the month will reveal the true story

 

Plus constitution concerns as discussed previously combined with unrealistic expectations and chaotic financial markets

 

Don't underestimate the significance of this find..watch this space

[Burn Notice]

The millions of barrels pumped out of Yemen /Saudi's aren't out of one single well..it will take time to unlock the billions of dollars in oil

 

The fact is PL is now the newest oil province in the region

[General Duke]

I like that, the new Oil province of the world. Consider that North Dakota has 6600 wells pumping 500,000 b a day. Puntland has one well drilled and millions of b anticipated. It's a huge development one that I a big supporter did not expect.

[Burn Notice]

General Duke;832098 wrote:

I like that, the new Oil province of the world. Consider that North Dakota has 6600 wells pumping 500,000 b a day. Puntland has one well drilled and millions of b anticipated. It's a huge development one that I a big supporter did not expect.

Well said GD

 

Good to see well researched posts based on facts rather than opinionated rhetoric that plagues the BB