GulfSlope Energy Inc (GSPE)

[MktMvn]

Davy Jones and LaFitte were two prospects drilled by McMoran in 2009, 2010. The targets there were in older rocks than Gulfslope is drilling, and the depths of the wells were record breaking. Davy Jones actually got below 34000 feet. In contrast Tao was only going to get to 25000 feet or so in the best case. It actually got to only about 15000 feet before hole problems shut it down. McMoran was looking for gas rather than oil. They found some pay zones and tried to test them, but nothing economic ever came of it. They were in such high temperatures and pressures that operations were extremely difficult to impossible. Gulfslope is going for much more conventional stuff in Miocene reservoirs which produce beaucoup oil in deeper water. A much easier play, theoretically, but shallow rock problems will have to be overcome, if Tao #2 is going to be drilled successfully and economically.