MAY - Melbana Energy

[percy]

https://cdn-api.markitdigital.com/ap...18049-3A644448

[JBmurc]

Oh dear, late announcement on market, not good news

sorry dont know how to share the link

going to be a stinker day tomorrow sadly

Yes FEAR will rule add in the fact we are at the end of the FY TAX loss selling I think we could see HARD spike lower ...which I will be buying ..got $27k in my call account it will be rough for sure but it will bounce and depending results from the GIANT Oil discovery .. was really hoping for a nice easy appraisal well ..but just maybe the deepest target will need more work to get to flow..

Great post just posted on HC from Alexei ii (who knows his O&G)

They had a similar issue in Unit 3 and in the other reservoirs 1A and 1B. One had cement blocking the fractures, the other had excessive mud cake. Both these issues impacted the ability to flow and the flow rate.

One of the risks with open hole completions - is they need to overcome blockages caused by the drilling mud cake. Given the highly fractured nature of the reservoir, drilling mud invasion is likely to be extensive and maybe there was not enough formation pressure to "push out" dislodge the filter cake in the fractures. They would be in a position to assess this by looking at mud loss ad correlating it to the FMI logs.

The Alameda section is behind casing, so they will have to perforate. Maybe they run some bigger charges to punch through any filter cake and this issue may not present itself in the Alamdea tests.

This is where brains and experience is going to have to come into play. Once they solve the problem, it will open up all the reservoirs, so it is essential they spend the money and time to solve the riddles. Whatever the case, maintaining lamellar flow conditions when producing will be a key issue and it will be very tricky, as we have seen. Permeability in an open fracture could be in Darcies, whereas in permeability in the porous/vugghy sections could be in millidarcies. This will cause anisotropy in flow and it can be problematic - my view is comingled production over a wide interval is not a good solution. Another consideration is that the fracture aperture (and therefore permeability) will be directly proportional to the pressure of the fluids they contain. So if you rapidly depressurise the near well bore formation, you could end up "closing" the productive fractures in the vicinity of the well bore.

They may be better served to focus production from narrow zones, so as to better control flow lines to the well. Another solution is to "frac" the formation so as to open up new conduits to allow formation fluids to bypass the mud impacted fractures.

The long and short of it is...this will take time.

[JBmurc]

This is not a duster ... Alameda is a GIANT oil discovery that's been sitting in place for millions of years It's going take time to crack the code on producing from it ...
we already know the lower sheet will be brought into production over the next many years ...but this much higher pressurised deeper traps need more work

[JBmurc]

nasty looking open heap of stop-losses will be getting triggered mid 4's could be the low point ...will add least 500k at lows today

[nztx]

that was a good dumping - low reached 3.8c

be a few shorters lost their trousers on that

[stoploss]

that was a good dumping - low reached 3.8c

be a few shorters lost their trousers on that

I think 3.6 traded....

[nztx]

Interesting .. wonder what close will look like

[nztx]

Looks like the boomerang might have bucked a few off on the low sweep today

[JBmurc]

yes been crazy day MUCH FEAR driven selling and emotions online Hotcopper etc I added 1.2mill MAY shares to my pile 3.9c-4c taking me to just over 3.5mill...

interesting how this all plays out ..

Buying MAY at $120-130mill cap looks very cheap to me ..

worth watching recent presentation and asking yourself ...has MAY got a future ??

https://www.youtube.com/watch?v=i5N-wyUc4iQ

[nztx]

Another day bucking a few more off onto the tarmac .

For every seller there has to be a buyer somewhere