Welwitschia Summary
This event again, has the potential to 5X HRT price from here alone. We are set to benefit more than any other company, save Tower, with a Namibia OIL hit. Amazed HRT price is allowing investors to have a free option on this Drill, with cash and production to back the value in case of a Dry hole.
I think this one has a REAL shot !!!!!!!!!!!!
What is attractive about the Welwitschia prospect
Situated at a migration focus in Walvis Basin:
Welwitschia is situated at the northern end of the Walvis Basin on a structural high on the flank of the Walvis Ridge. Structural highs act as focal points for both horizontal and vertical migration of hydrocarbons. This puts Welwitschia and Tower’s other prospects in ideal locations for the migration of hydrocarbons from mature source rocks in the adjoining Walvis and Namibe Basins.
Direct Hydrocarbon Indicators in seismic:
Visible in 3D seismic are certain very clear AVO responses. A very strong anomaly could be indicative of gas, which would correlate with the gas chimneys seen. Weaker responses could be indicative of oil. The independent auditor, Oilfield International Limited, has taken into account the possibility of finding gas. It estimates a 35% probability of finding dry gas and/or condensate, but a 65% probability of finding light oil.
Gas chimneys which terminate at a seal:
Gas chimneys are very clear on the seismic. They are visible as vertical pock marks which represent the disturbance of sediment as gas travels vertically through various layers. Gas chimneys are suggestive of the presence of hydrocarbons in the section, although they can also be caused by de-watering or paleo gas escape. What is compelling in the case of
Welwitschia is that the pock marks all terminate at the same horizontal layer. This provides confidence that the seal rock, an impermeable shale, is intact and not allowing hydrocarbons to escape
Proven reservoirs in Upper Cretaceous elsewhere in the basin:
Norsk Hydro drilled two wells on the edge of what are now Tower’s licences. One of the wells saw ‘good fan sands’ in the Cretaceous and younger Tertiary. Tower is drilling to test these specific rock layers. Knowing that there is good quality reservoir so close to Tower’s prospects is highly encouraging. While further afield, HRT’s Murombe well encountered good quality sand in the upper Cretaceous and Chariot’s Tapir South encountered thick, excellent quality reservoir sandstones.
'THE VAN'
AI
