Wednesday, June 01, 2011

I got it wrong

Steve Connor is not a prat ... on this issue (item below this one):
Drilling of the Preese Hall #1 will be completed by close of business Wednesday 8th December 2010. Management considers this well to be very successful thus far.

This well is the first "true" shale gas well ever drilled in Europe (drilled and operated by Cuadrilla Resources) and will reach target depth of 9,100 feet in the Clitheroe Limestone Complex – 900 feet deeper than originally planned.

Total core samples of approximately 260 feet have been taken which indicate hard, brittle rock – fractured both horizontally and vertically, and producing substantial gas flows as well as a presence of methane and other hydrocarbons.

The core sample will be analyzed in laboratory conditions and the well will be fracced. Initial indications are that Preese Hall #1 confirms and possibly exceeds the original expectations of management as to the prospectivity of the Bowland shale.

Preese Hall #1 is deeper than originally planned in order to encounter all of the prospective shale sections – in excess of 4,000 feet and, has taken longer in order to take additional core samples, as well as to penetrate the hard formations encountered.

The Cuadrilla rig will be located to Grange Hill #1, approximately 15 kms away, for commencement of drilling scheduled for January 2011. The workover rig, fraccing and testing equipment will be mobilized immediately to Preese Hall and a pre-frac well test conducted in December. The duration of this test will depend upon the well response; however, it is likely that the full frac test will commence in January 2011.

Preparations for a third exploratory well in the Bowland shale, Anna’s Road #1, are being undertaken – with a planning permit approved on 17 November 2010.

The equipment and drilling rig (one of the most advanced in Europe) have performed well in excess of expectations and, the well (together with the outside and additional scientific data), confirms in entirety the science and engineering undertaken prior to the commencement of drilling.

Results thus far warrant completion of the full work programme originally envisaged. It must be noted however, that management will not be in a position to make a detailed decision as to the most appropriate way to move forward in terms of commercialization until drilling and fraccing of Preese Hall and Grange Hill have been completed and analyzed. This is expected to be around the end of Q1 2011.
You must admit, when I do get it wrong, I don't go in for half measures ... I get it seriously, unequivocally wrong.