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Oil in Hedge End


70's Mike
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There was a nodding donkey was in the field by Charles Watts Way many years ago, it is well known there are large reserves all round Hedge End, stretching up around Winchester.

 

Wych Farm until recently held the record for drilling vertical wells, they can drill into the reservoirs from miles away these days, no need to go close to the houses.

 

There is a long way to go before peak oil chaps.

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the oil in Hedge End used to be in the Falklands....

 

mind you, there was drilling on the Forest road outside Newport on the Isle of Wight a few years ago. Came to nothing. Probably the same geologic structure. Might look good on seismic but once you core it it becomes apparent that there ain't none worth getting out.

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the oil in Hedge End used to be in the Falklands....

 

mind you, there was drilling on the Forest road outside Newport on the Isle of Wight a few years ago. Came to nothing. Probably the same geologic structure. Might look good on seismic but once you core it it becomes apparent that there ain't none worth getting out.

 

Times change though - technology to extract more oil has improved and the price of oil has increased - changing the economics. Its been known for years there is oil around the Falklands but when the original surveys were done oil was at $30 per barrel and the water was too deep for viable extraction - now at $70+ its diffrent. Might be the same with Hedge End.

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Times change though - technology to extract more oil has improved and the price of oil has increased - changing the economics. Its been known for years there is oil around the Falklands but when the original surveys were done oil was at $30 per barrel and the water was too deep for viable extraction - now at $70+ its diffrent. Might be the same with Hedge End.

 

the initial core samples Desire have taken at Falklands are not looking promising though. Share price cut in half. West Texas Intermediary is now above $80 /bbl and holding strong but even at that price the economics don't hold up for deep sea speculative prospects. BPs boss has recently said that any new investment (read, drilling and exploration) needs a confirmed price above $80 or it is a no go.

 

And not only does the spot price matter but so to does the flow rate after extensive flow testing and the type of crude. AFAIK Fawley is not set up to process heavy sour which is what they found under the Isle of Wight. So it would need to be shipped out to Grangemouth or other. Then there is the actual recoverable reserve versus resource issue. If the resource in place is too small to bother about then it doesn't matter about the spot price if the total cost is never going to be recovered at a margin which share holders expect. Never mind the URR is typically 50% max for these sort of formations and most likely a lot less.

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:D

the initial core samples Desire have taken at Falklands are not looking promising though. Share price cut in half. West Texas Intermediary is now above $80 /bbl and holding strong but even at that price the economics don't hold up for deep sea speculative prospects. BPs boss has recently said that any new investment (read, drilling and exploration) needs a confirmed price above $80 or it is a no go.

 

And not only does the spot price matter but so to does the flow rate after extensive flow testing and the type of crude. AFAIK Fawley is not set up to process heavy sour which is what they found under the Isle of Wight. So it would need to be shipped out to Grangemouth or other. Then there is the actual recoverable reserve versus resource issue. If the resource in place is too small to bother about then it doesn't matter about the spot price if the total cost is never going to be recovered at a margin which share holders expect. Never mind the URR is typically 50% max for these sort of formations and most likely a lot less.

 

I think you know more about this than me :D

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