dbouclin Posted July 5, 2007 Report Share Posted July 5, 2007 Interoil (IOL.TO) is a refining and marketing Company in Paupa New Guinea. Recently they also took on an exploration phase and discovered a giant gas field called the Elk prospect with the updip Elk#1 well. The ELK #1 well produced large quantities of gas from fractured limestones. The ELK#2 well is currently drilling and upon reaching the top of the carbonate pay zone a DST was performed which the company only said flowed gas to surface (which probably means Too Small Too measure). The stock dropped from 45 to around 28. Now the interesting thing is that any carbonate geologist will tell you that limestones can be very heterogeneous i.e. porosity, permeability and fractures come and go and are not evenly distributed throughout the rock volume. There could be plenty of upside on this well as it drills its way to TD: the good news is that the large gas volume seems to be confirmed as per prognosis; future DST’s in the lower part of the pay section before or after standard acidization treatments could yield a productive well; and the possibility of a oil leg is very intriguing as most other nearby carbonate structures have them. This one is not for the fainthearted! http://interoil.com/presentation.asp Link to comment Share on other sites More sharing options...
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