Key UD highlights from JS today:
• F Perf gun has been released and dropped to the bottom of the hole (as opposed to fishing out). All sands are now exposed and they will perf all of them (A-F) with the bigger wireline guns
• In the process of circulating out clear completion fluid and replacing with heavier mud for perf'g the sands. Once perf'd, they will run the production tubing back in the hole (down to 16,000'), place the tree back onto the well head, nipple up, and flow test. Lots of heavy equipment and will take time – thinks it will be flow tested by late June and come under the June 30th date. Note: IMO, June 30th is big for EXXI as they will be able to book FYE reserves with N&S if the flow test even occurs before June 30th.
• Said that every core they have taken below the salt has shown natural fractures – which he attributes to the geology and geo-pressures. Stated that natural fractures could enhance flows (including in DJ1).
• All completion/production equipment has worked as designed so far – he touted the technology accomplishments on a slide. IMO – this is part of the "technical assets" that JB has mentioned in the past.
• EXL rig will go to EXXI for one well as soon as it is done with DJ1. Then, return to complete DJ2 in the fall. First completion at DJ2 will be in the Cret.
• Completion will require 30,000 lb equip that needs to be designed/developed – putting completion date out to late 2014.
• Talked about the stacked pays there and focused on the Chris R sands (56'). Stated that Chris R was low (down dip) on the structure near the spill point. Excited about the Chris R up dip extent and correlation to nearby structures (Captain Blood and Baritaria).
SS188 & Cupolas
• Liner has been set and they are drilling ahead (on sidetrack around BHA that was lost during kick). Mentioned MMRs 10Q that stated the kick. Bottom hole temps below 300 deg. Said that by mud log (and he cautioned here) that they had C5 shows and therefore could be a liquids discovery.
• Stated that he had about a 3 hr meeting with JB on Monday and they discussed an SS188 development well and Barbosa exploration well soon after the current SS188 well is complete and confirms pay/economic.
• When asked about Cupola resource potential, he stated that SS188 could be .5 TCF and Barbosa could be 2-3 TCF. Drilled SS188 first to hold BBW lease unit.
• Resource potential raised from 30TCF to 48TCF via resent discussions.
• Mentioned one onshore prospect name as "Highlander" which was a public lease they picked up. Believes that it will be drilled after Lineham Creek with the Unit rig – rig will take 3 months to disassemble/transport/reassemble.
• Talked about Lighthouse Bayou (aka Bears Hump) finding 2 top Wilcox sands before suspending drilling. Said that CVX believes that the Wilcox sand quality decreases as you go west (LB/BH is on the western "boundary" of the fairway) – but CVX thinks they have "plenty for it to work" at LB/BH.