Oilexco Chart & fundamentals

The post by Bigbadoil on Stockhouse neatly sums up what the impact could be for oil:

Well they are testing 80 feet of section (yes 80 ft boys!!)
As my "little birdie" says.. they are going to isolate 2 zones for testing and run 2 seperate tests. The indication being they are thinking that they are separate in a reservoir sense. I know this well was drilled for downdip appraisal of the 16 well. They see a shale break between the 2 zones and they want to see if they are in communication IMO.

Interpretation: It seems they have successfully appraised the original well but they may have picked up another zone. They maybe a stratigraphic component to the Jurassic play... The use of VSP sort of suggests that this is the case and they want to see how far this zone extrends away form the borehole. If the testing and VSP data indicate a separate zone of significant lateral extent, it may set up another location to drill.

Nexen has set up blackhorse as a hub for the pipeline to bring in production form several satellite discoveries and then bring it all in to Scott/Telford. This explains the early pipeline applications. No matter what the results of this well, Nexen had this in mind. I think that is what got Art and the boys got excited about this particular project for 2 reasons:

-The presence of nearby infrastrucure increases the economics of any discovery..
- Nexen were going ahead with putting the infrastructure in place anyway. so therefore it was an early production candidate.

So potentially what have we got:

-A succesfull step-out to the original well with reservoir proved and hydrocarbon bearing,
- a potential 2nd Jurassic zone,
- a potential uphole tertiary zone (18z sidetrack)

Not bad if all pans out. IMHO

Bigbadun'

Cheers Dalesman