Thank you for helping clarifying things and please correct me my understanding.
- In the 2011 call for nominations the area around the Summit Creek was not excluded. This was the big year for land sales. Not sure why Husky didn't post lands in the IFR area.
- As you said, in the 2012 call for nominations the area was excluded.
Husky allowed Block 441 to expire in May 2011 and forfeit their deposit of $2.6 million. This is the block which is around the Summitt and Stewart SDL. If I follow your argument, this block should be in the "guts" of the play. Doesn't make sense that Husky would allow it to expire.
When you asked about the Canol oil test in your earlier post where you referring to the test of 20 MMcfd and 6,000 bopd condensate? I am familar with this test. I didn't think it was a Canol test? If it is that is great, but that would surprise me. Anyways that would confirm that the Canol is wet gas not oil at 300 bbls/MMcf. A good test, but not the same as oil which would have a GOR of 1000 which means 1,000 bbls/MMcf.
Am I misunderstanding the most recent IFR presentation? IFR seems to think that the Summit and Stewart and the TDL area is in the wet and gas window
- On page 6 it seems to show its lands are in in the wet gas window. You will notice the vitrinite reflection is between 1.0 and 1.6 contours. This is beyond the oil window which is shown in green on the IFR presentation.
- On page 12 of the IFR presentation, it also shows that their lands are in the wet gas window.
- On page 13, the TOC is near the 4% contour. This isn't bad, but not great compared to the lands farther north. TOC is the stuff that generates oil and it also gives the rock permeability when the Kerogen is converted to oil. TOC in the north is more like 8 to 12%
If I was IFR I would be putting Husky on notice to test the Canol. I am not advocating re-entering to do horizontal leg, but just perforating and doing a drop off test and flow test. Who knows perhaps the Canol is naturally fractured there and will flow without stimulation. The Husky well to the north seems to be. This is relatively inexpensive and would really move the stock.
Thanks for helping clarify things.