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Re: Preliminary Appraisal Well Results at North PlatteThis is great news. Cobalt has a number of blocks in a larger area of the GOM that has shown great results. The North Platte #1 ~550 net feet of pay The North Platte #2 Plugged and abandoned due to a mechanical problem. The North Platte #3 ~550 net feet of pay The North Platte #4 ~650 net feet of pay The Shenandoah oil field discovery well had 300 net feet of pay. The Shenandoah #2 appraisal well found approximately 1,000 net feet of oil pay. The Shenandoah #3 was a dry hole. The Shenandoah #4 found approximately 600 net feet of pay. The Shenandoah #5 found more than 1000 net feet of pay. What can happen on these large GOM structures is that the pay down dip from the top of the structure is thicker when the structure (hill/mountain) existed at the time of deposition. The sands tend to thicken up down dip because some of the sand trickles down from the top. This also tends to cause the sands to be higher quality on the flank of the structure versus the top and higher quality overall than a flatter structure. The North Platte is a fairly "steep" slope structure and the company believes that they have over 2,000 net feet of column. The steepness will mean that the oil will flow upwards better than it would in a flatter structure. This will tend to mean that they will produce more of the oil that is originally in the structure. Given the cost of producing oil from these deep water structures, the improved flow improves the economics quite a bit. The latest well – the North Platte #4 was drilled close to the east side of the structure. It was close to what the company believed was the edge of the structure. Given they didn’t find the oil water contact, the inference is that most of the structure that is above the “height” of that well (which is probably 90% of their drawing) is above the oil water contact. The other North Platte wells were drilled close to the apex (ridge) along the top of the structure so really showed more about the rock quality and consistency along the apex. Cobalt indicates that they plan a “geologic” sidetrack from the North Platte #4. It is possible to determine more about the general structure or they could use it to determine the oil water contact or both. The size of the structure was estimated to be 400 to 800 million barrels. This latest well indicates the ultimate size could be closer to the 800 million barrels than to the 400 million barrel size. Possibly given the multiple discoveries in the area, they can build one main natural gas pipeline to shore for several of the discoveries. This would save time and resources especially given that the projects will come on at different times and the peak production from each will be offset from the other. This is something that I’m sure that they will consider doing depending on the size and timeline of development. |
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Msg # | Subject | Author | Recs | Date Posted |
321 | Re: Preliminary Appraisal Well Results at North Platte | cnrlong | 2 | 1/5/2017 7:41:31 PM |