Post from another board (Railfan) who has an extensive background in oil exploration. While many tagged him as bearish or a short shill (I thought he was), questioned his knowledge and did not heed his cautions about not investing more than you can afford to lose in HDYN, he was spot on about Fatala. This is what he has to say about the latest PR:
What the second HDYN PR said is log calculations indicated hydrocarbon saturation in rather poor quality reservoir rock. It also said there were minor mud gas increases in this interval. No mention was made of oil shows in cuttings samples. In my mind there is a high level of uncertainty if there is in fact hydrocarbon saturation in this rock at the level calculated.
They made no mention of the specific levels of gas shows. Please note the words mud gas should not indicate that only methane of CH4 is the hydrocarbon in the rock. Mud logging units have typically samples for C1 methane, C2 ethane. C3 propane, C4 butane, and C5 pentane. Some newer unit will also sample for C5 thru C8.
Even zones that produce natural gas and no oil will also have C2 thru C5 unless the gas is biogenic, then it is usually 99% C1 or methane.
Bottom line, the 5 meter zone discussed in the second PR has no value, it is useless. It does not point to a future drill location. I am not sure why this was even worthy of a PR except to create a bit of interest from investors who do not understand how insignificant this little interval really is in the grand scheme of things.
Be careful if you join the stampede. Don't invest more than you can afford to lose. One PR can send this right down to zero and there's nothing of substance left in the company at this point. The well was a failure, the exploration lease expires in 4 more days, the drill ship has left Guinea waters and the company has no funds, nor does it have any other exploration prospects or sources of income.
