Crumbs for Sterling investors?
Well I’ve had feelers out here all yesterday and it is still looking grim re’ the recent bad news. But being a fair-minded Blog and understanding that an awful lot of people are invested here and it would give me great pleasure if SEY actually had a strike because lets face it if there was ever a company that really needed some good news SEY are that company! So there are a few crumbs of comfort here!
I’ve spoken to a colleague with a lot more understanding of technical problems encountered on drill sites than me and she is of the opinion that the operation to eliminate the pressure build up at the surface with the flushing out of the hydrocarbon build up via a circulation method is “proven corrective procedure” for these types of problems as for the drill pipe and the bottom hole assembly she tells me that there are many different ways to retrieve these providing that the first two above are successful. There is also a chance that they may have to abandon and plug the site if they are unable to get the extra equipment needed for the recovery operation or if it is deemed too dangerous (possible loss of the rig/personnel)
Analysts in the sector are suggesting that Sterling Energy’s statement re’ the hydrocarbon gas influx may be a positive sign as to the presence of oil however I note that the company are telling us thus;
“The entry of hydrocarbon gas into the well, whilst encouraging, does not provide information as to the potential for material hydrocarbon accumulations in the Jurassic reservoir target. Wire line logs and flow tests will be required to evaluate any potential reservoirs encountered and these have not yet been acquired.”
I’m not technically savvy but I do detect from the above that providing they can get the gear to the site then they have a fair chance of success although it is a dangerous situation it is not insurmountable. The time factor may very well be their worst enemy.
Good Luck to them!
Hola!
Daniel.
PS. Not for the faint-hearted are Sterling! Terrible track record! But as Jackson Black points out even the odd long-shot does come in occasionally!
My understanding is that time is definately against them. HS gas is corrosive to steel and so they need to fish that assembly out ASAP.
Good luck to all but I am very glad I got out a while ago.
ALO and CHC
BMD
Just wondering if some comments could be made on these two.
There seems to alot going on here at the moment and value to be had seeing ALO have just secured 5 new Gold and Uranium Licenses – with some exploratory work carried out already.
Damien Conboy is worth keeping on eye with fingers in a alot of resource pies – also in the successful spot light recently through Strait Oil.
Any thoughts would be appreciated