I can’t remember exactly what the drill depth for Canoe is, but it is definitely very shallow. Depending on the details of how the well is designed, it could take anywhere from a week to three weeks to get to total depth.Then electric logging of the well will be done to determine what is there in terms of reservoir and hydrocarbons. Given the nature of the prospect, with seismic indicators and nearby analogues, it should be quite easy to determine a pretty accurate reserve number. If the partners decide that they have a developable, economically viable discovery, they will then have to decide how to best move to production. This would be complicated by the handover of operations to Delek. So most likely the exploration well will be abandoned, possibly temporarily, and the rig will quickly move to Tau.
Best case scenario is a viable discovery which Delek moves quickly to develop. That would involve getting permission from the BOEM, more permitting etc. Also contracting with another rig and a lot of specialist drilling services to complete the well and drill any necessary development wells. There are too many variables to make any good predictions. But if there is a nice field at Canoe I can envision production by late this year or early 2019. Doesn’t mean it’s likely, but it could happen.
