Not a big surprise - guess everyone forgot about this excerpt from EEL's 2010 Annual Report:
...While the discovery in the Bomu 1 well of gas rather than oil was disappointing, the reservoir sands and traps were, by and large, encountered as expected. The JDA extended the Phase 1 Exploration Period by two six month periods to allow Sinopec to complete the technical and commercial evaluation of the discovery and the other prospects on Block 2. Four other wells were drilled in the JDZ, three in Block 4 and one in Block 3, simultaneously with Bomu 1. The JDA granted extensions on these blocks as well, allowing the common operator, Sinopec, to integrate the studies on a regional basis to the benefit of the JDA and participants.
The studies have confirmed that Bomu is a small gas discovery, which under current conditions is sub-commercial. While an adequate source of oil is believed to exist, the absence of faulting between the source and reservoir sands prevents the oil from migrating into the reservoirs. The studies also conclude that the best remaining prospect is more likely to contain gas than oil, in quantities not very much larger than those discovered in Bomu.
This current evaluation of the block does not justify commitment to a second exploration well, as required for entry into Phase II of the PSC. ......
