It tells us that they will have about 4 month until results from the next well "Tau"
This rig will move to drill Tau.
Gulfslope Energy (GSPE)
Re: Gulfslope Energy (GSPE)
This report, though perhaps not what some (uninformed) speculators wanted to hear, states exactly the result they were hoping for (and their plan) as explained in detail at their recent ASM (which I attended).
They found oil sands where they drilled at Canoe shallow, are temporarily abandoning the well while they study the log analyses and seismic to "define commerciality of these oil pays," and are setting multiple open hole plugs (required by law) across "several intervals." Depending on what the analysis shows, there are several approaches they can consider as to how they would further develop the shallow part of the Canoe prospect.
Also, exactly as planned, the rig is moving to Tau to drill one of their largest subsalt prospects (drilling time, as noted, about 4 months).
Canoe shallow was never estimated to be large enough to move the needle, though hitting oil sands validates to a degree the competence of the GSPE team (at least in their analysis of above salt prospects). That might have some value to Delek.
Awaiting word on how GSPE will finance their share of the Tau initial drilling costs.
Tau will be the make or break event.
They found oil sands where they drilled at Canoe shallow, are temporarily abandoning the well while they study the log analyses and seismic to "define commerciality of these oil pays," and are setting multiple open hole plugs (required by law) across "several intervals." Depending on what the analysis shows, there are several approaches they can consider as to how they would further develop the shallow part of the Canoe prospect.
Also, exactly as planned, the rig is moving to Tau to drill one of their largest subsalt prospects (drilling time, as noted, about 4 months).
Canoe shallow was never estimated to be large enough to move the needle, though hitting oil sands validates to a degree the competence of the GSPE team (at least in their analysis of above salt prospects). That might have some value to Delek.
Awaiting word on how GSPE will finance their share of the Tau initial drilling costs.
Tau will be the make or break event.
Re: Gulfslope Energy (GSPE)
Yes, for those of you that are not familiar with offshore drilling operations (since we seldom discuss them here), "temporary abandonment" of the test well is common practice. Remember, they are way out at sea and the drilling rig is not used for completions. Usually, offshore you need to drill several "confirmation wells" to decide the best place to set the production platform.
This project is in shallow water on the shelf, so production facilities should be easy build and relatively cheap.
When I worked at Hess Corp. the most significant offshore project we had was called Baldpate. The original test well was followed by ten confirmation wells before they decided on the size and type of production facilities. Baldpate was in 1,650 feet of water, at the time (1995) it was consider very deep water. When Baldpate was placed on production, it ramped up to 80,000 barrels of oil per day and single handedly paid off our acquisition of Transco Offshore. It came online when oil was selling for around $20/bbl. Back then it was just a "wild dream" that WTI would someday go to $50/bbl.
This project is in shallow water on the shelf, so production facilities should be easy build and relatively cheap.
When I worked at Hess Corp. the most significant offshore project we had was called Baldpate. The original test well was followed by ten confirmation wells before they decided on the size and type of production facilities. Baldpate was in 1,650 feet of water, at the time (1995) it was consider very deep water. When Baldpate was placed on production, it ramped up to 80,000 barrels of oil per day and single handedly paid off our acquisition of Transco Offshore. It came online when oil was selling for around $20/bbl. Back then it was just a "wild dream" that WTI would someday go to $50/bbl.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group