PeterGray wrote:It will tell you how the sections of Lancaster penetrated by the two wells involved behave over a multi year period. And give them a much clearer idea of how the reservoir in that area behaves. It should also help them improve their modelling.
Surely, significant uncertainty about STOOIP and most importantly recovery over the rest of the GLA will remain, I wouldn't argue otherwise, but the EPS will provide a lot of data, and cash flow if successful, which will give a much sounder basis for making predictions about the rest of the area.
There isn't really any other sensible way to approach trying to exploit the resource that I can see.
Peter
I agree that if the EPT wells cone gas and/or water, it will tell you it was time to go home. But if they don't, I don't see how the short production history
will give an indication of the reserve on which to build a full development case.
Provided the EPT makes money, it would probably be worthwhile just to keep it running and take the profit. But it depends entirely on the costs of a rig/offshore loading, which is beyond my area of expertise, but I would have thought would be expensive per barrel.