CUE-> Pantheon of small oil stocks

[jdg]

has a timeframe been set for drilling zeus? i can't seem to find one, but that doesn't mean it isn't there... thanks if anyone knows.

-j

[macduffy]

has a timeframe been set for drilling zeus? i can't seem to find one, but that doesn't mean it isn't there... thanks if anyone knows.

-j

Announcement of 4 July said October, 2008.

[jdg]

cheers, macduffy. if you could now find my keys, that would be great...

[Crypto Crude]

Maari First Oil - September
Largest Undeveloped Oil Field in New Zealand

The Main Maari Structure is anticline and Holds three Zones of Interest...
Moki, M2A formation, and Kapuni formation (mangahewa)...
Only The Moki Formation will be produced at first which Holds P50 recoverable oil volumes of 45-50Million... Only the Moki Formation makes up current field reserves... with 140 Million barrels in place in that formation...
Banking requirements usually require P90, and P90 is 34million barrels in Moki formation (90% probability of being produced).....
1P ->34million barrels... 2P ->50million barrels.... 3P -> ?...
recoverable oil will increase as Oil prices have increased, making P90 higher...... In the main field the upside to 50million barrels recoverable comes from the M2A formation... This zone is above the Moki Formation, further appraisal will take place during development drilling of the main zone... Upside is interpretted to be 12 million barrels recoverable in the M2A formation.... Infact Maari-2 well, intrepreted a 25 meter oil bearing sand column in the M2A formation, with mobile oil of 17m....

small summary of wells drilled...

1970- Maui-4 (manaia prospect) 40 meter Live Oil column, flowed 575 BOPD, drilled in wrong location... I will come back to this shortly...
1983- Moki-1... 40 meter live Oil column, flowing 660 BOPD over upper 10m interval..
1985- Moki-2a drilled on structure edge, which resulted in small column of 6meters...
1998- Maari-1 hit 54 meter vertical oil column, drilled to total depth through Kapuni...Was then plugged back and side tracked through Moki formation (maari-1a), Horizontal drilling length of 654 meters with 563 Oil bearing, This flow tested at 4350 BOPD...
1000 meter horizontal section is thought to flow initially at 5000 BOPD...
2003- Maari-2 (1.2 KM south of Maari-1).... Appraisal well... added 45million barrels (P50) to total barrels in place in the Moki Formation, hit 3 sand layers in M2A......

The Kapuni formation (mangahewa) has a 30meter oil column with an overlying gas cap... reports that I have read suggest this is uneconomical to extract... this was said when Oil prices were only $70US per barrel...?
The kapuni formation is much deeper... -> moki 1200M.... Kapuni -> just over 2100M....further testing will be required...

Manaia Prospect

10 KM South West Of the Main Field... Is not being developed yet, and is going to be appraised at some stage During the 5 development wells, and 3 water injection wells...Oh, The Water Injection wells are used to help maintain pressure to get higher flow rates, and to push the oil towards the producing well... this results in higher recoverable reserves...
OK manaia,
Is a very exciting prospect because the well that was drilled in 1970 (shell I think drilled it), was drilled off center, off crest and flowed at 575 BOPD only...

Horizon said-AVO and inversion work also suggests that reservior quality and/or hydrocarbon saturation may improve updip from Maui-4

two structures are being targeted, Mangahewa formation (kapuni), which hit the 40m plus oil column (no gas cap).... and the Moki formation which was drilled in a less optimal location... For example,
Oil rises and In an anticline structure Oil fills up high points... Imagine like an upside down ice cream cone where oil pushes to the tip of the cone...
The Maui-4 well was not drilled near the tip, it was drilled closer to the top of the cone.. (on the edge of the structure)...
Im sure of it that the top of the cone will be hit this time... Oil is there in place, its same stucture as Maari main field...
Recoverable resource of 25million barrels average, with up to over 100 million barrels potential in place...
very similar to the Main field apart from M2a Sands are not present in Manaia...
Currently we have a 50million barrel oil development with water injectors...
The crude quality has a high Wax content and has a small premium to the Brent Crude benchmark...
Using downhole electric heating and FPSO tank heating...
First production in september... Each development well will be connected to production after they hit the oil ....
Upside recoverable could be up to 100% more Oil in total...

100 million barrels of oil at a shot, but this will take further work, and all the dots will have to be connected.....
The Manaia prospect reserves, main field M2a, and Kapuni target has not yet been included in the main field development reserves and represent big upside...
Right now we can bank on 50M recoverable... I hope we can bank on 50 million more recoverable... its a wait and see...
...
At this stage I will wait for Cobra to be completed... Theres no major rush to get in...Cobra is likely to be plugged and abandoned, and I will get in that day...Will watch tomorrow as DOW was down....
OCT well ZEUS, free carried and one of the most highly anticipated offshore wells in Auzzie waters of this year...
CUE will get its re-rate just like NZO, and it will be bigger in percentage terms than NZO's... SP could very likely head lower (before it starts to run)...
I feel that Manaia is low risk increase to current reserves... This will perform...

Risks,
Cobra in the short term... DOW in the short term, medium term...
Weather delaying project...
unforeseen problems...

.^sc

[Crypto Crude]

Wow Malcolm....
You were selling CUE when I was Born...
...Manaia has been almost 40 years in the making... Maari has been 20 odd years in the making...

.^sc

[Financially dependant]

Thanks for the excellent round up SC, I bought a little early but might just hold through cobra and might top up on any bad news (recommended by O & G weekly too)!

[AMR]

I'm using a 13 day EMA to time my entry. Going to try and get in close above the 19.5c support. The long term uptrend is being tested right now, formed way back in Jan 07.

[tricha]

yea and thier suspect melbourne lawyer founder has made millions out of di-k head share holders who trust him------ but he has managed to hold the company togetheir ---- anotheir tony radford but cue will never make 50 c again

Double Dutch if I ever heard it.

Why are u buying if they are such a dog, with such management

[tricha]

Thanks for the excellent round up SC, I bought a little early but might just hold through cobra and might top up on any bad news (recommended by O & G weekly too)!

Totally agree, great work Shrewdy , but maybe Cobra as a dud already factored in ?

[Crypto Crude]

Oh man,
Im trying to upload this file to show that Maui-4 was drilled in the wrong location... I will try and get it on in the next few days... Im a real bunny with computers... you lot may just have to trust me on this one....

Tricha, its hard to know if Cobra is factored into SP or not... The current SP does suggest that an abandoned Well is factored in, but there will always be someone who will sell on the news...

malcolm-cue will never make 50 c again

HAHAHAHAHAHA

Theres a greater chance that CUE will hit $1 per share than CUE not hitting 50cents (eventually)... CUE's market cap is only 135 million dollars...
without market risk I would probably be prepared to bet the farm on this stock...

.^sc