Operator ONGC is currently drilling a prospect on exploration block CY-DWN-2001/1 located in the Cauvery Basin, offshore
south eastern India. Norwegian oil minor Rocksouce (listed on the Norwegian Stock Exchange) has been allowed to farm in with a 10% stake due to the fact that they are at the forefront of interpreting Controlled Source Electromagnetic (CSEM) signals that helps seperating between structures containing water only and structures that contains hydrocarbons (oil and/or gas). This is a relatively new method that is able to bring the success-rate from 20% up to as much as 80% in some cases, a revolution according to among others sources at ONGC.
The first well in a three well-programme at Block CY-DWN-2001/1 is currently being drilled, and is expected to reach the reservoir in late September 2008, and final results are expected during October 2008. The prospect is estimated by Rocksource to have a mean resource size of approximately 1.6 billion boe and the chance of success is estimated around 63%. Given success, this discovery will be a nice little contribution to ONGCs reserves. For Rocksource, even a 10% will be a real company maker that analyst predicts will lead to a 3-400% surge in the share price. It is also worth to notice that Rocksurce currently has a low cost production of around 2500 barrels/day onshore USA, predicted to increase to around 5000 barrels before end of 2008. Rocksource also has signed another "knowledge for acreage"-deal offshore West Africa with Ophir Energy. The company is also extremely well positioned for further licenses on the Norwegian continental shelf and UK shelf (where they have licences with positive CSEM signals already, waiting to be drilled). Ahead of the upcoming licencing rounds RGT has screened the areas with their proprietary technology, and as a consequence the company knows exactly which lisences that are worth applying for in the closed/secret process.
However, for now the drilling currently underway in India has the focus. The fact that mighty ONGC let a minor like Rocksource in on this shows the importance. What ONGC will gain on this? Well, apart from success-rate that will increase from todays 20% or so to around 60-80%, the problem with high costs for hiring oil rigs will ease. There is a shortage of oil rigs in the world today, especially deep-water rigs. That leads to very high day rates (over 500 000 USD/day) and in some cases to the postponement of drilling on promising prospects simply because there are no oil rigs available at all. If Rocksource can help ONGC increasing the success rate it will help solving the rig shortage.
I repeat that the first well in a three well-programme at Block CY-DWN-2001/1 is currently being drilled, and is expected to reach the reservoir in late September 2008, and final results are expected during October 2008. There is huge anticipation amoung shareholders of Rocksouce at the moment. We are waiting for good news from India
south eastern India. Norwegian oil minor Rocksouce (listed on the Norwegian Stock Exchange) has been allowed to farm in with a 10% stake due to the fact that they are at the forefront of interpreting Controlled Source Electromagnetic (CSEM) signals that helps seperating between structures containing water only and structures that contains hydrocarbons (oil and/or gas). This is a relatively new method that is able to bring the success-rate from 20% up to as much as 80% in some cases, a revolution according to among others sources at ONGC.
The first well in a three well-programme at Block CY-DWN-2001/1 is currently being drilled, and is expected to reach the reservoir in late September 2008, and final results are expected during October 2008. The prospect is estimated by Rocksource to have a mean resource size of approximately 1.6 billion boe and the chance of success is estimated around 63%. Given success, this discovery will be a nice little contribution to ONGCs reserves. For Rocksource, even a 10% will be a real company maker that analyst predicts will lead to a 3-400% surge in the share price. It is also worth to notice that Rocksurce currently has a low cost production of around 2500 barrels/day onshore USA, predicted to increase to around 5000 barrels before end of 2008. Rocksource also has signed another "knowledge for acreage"-deal offshore West Africa with Ophir Energy. The company is also extremely well positioned for further licenses on the Norwegian continental shelf and UK shelf (where they have licences with positive CSEM signals already, waiting to be drilled). Ahead of the upcoming licencing rounds RGT has screened the areas with their proprietary technology, and as a consequence the company knows exactly which lisences that are worth applying for in the closed/secret process.
However, for now the drilling currently underway in India has the focus. The fact that mighty ONGC let a minor like Rocksource in on this shows the importance. What ONGC will gain on this? Well, apart from success-rate that will increase from todays 20% or so to around 60-80%, the problem with high costs for hiring oil rigs will ease. There is a shortage of oil rigs in the world today, especially deep-water rigs. That leads to very high day rates (over 500 000 USD/day) and in some cases to the postponement of drilling on promising prospects simply because there are no oil rigs available at all. If Rocksource can help ONGC increasing the success rate it will help solving the rig shortage.
I repeat that the first well in a three well-programme at Block CY-DWN-2001/1 is currently being drilled, and is expected to reach the reservoir in late September 2008, and final results are expected during October 2008. There is huge anticipation amoung shareholders of Rocksouce at the moment. We are waiting for good news from India
