GulfSlope Energy Inc (GSPE)

[MktMvn]

By far the most common result of an exploration well always has been “maybe we could develop this”. I think most people have this vision from the movies of the ground rumbling, the rig hands bailing off and then a huge fountain of oil spewing from the well. Sorry. What almost always happens is there is some evidence of reservoir, some evidence of hydrocarbons, maybe a hint that a trap is in place. But it’s all based on electronic measurements that can be screwed up in any number of ways. So.....I think it’s obvious that the measurements from both Canoe and Tau were inconclusive, because the partners have been unwilling to call either one a dry hole. What do you do in this situation? First, you can do every bit of analysis possible on the information you have. But in the end you have to gut up and go try it again. And the second time around use what you know from the first well to avoid the mistakes and get a cleaner, less ambiguous result.