88 Energy Ltd (EEENF)

[Ailan]

They are definitely chasing an extremely good prospect, this is basic geology...three things that can't deny physics...gas, oil, water...thats the order you will find them in a reservoir top to bottom...but they reservoir could be layered and also running up dip or down dip (slanted in the formation)....the gas will be at top, oil in the center, water in the bottom which is usually called the "water leg"...if they hit large gas layer with small oil layer then they can discern which way to drill to get into a thicker oil layer...they could also do this if they hit a small oil layer but large (thick) water layer (leg)...BUT if they hit small layer of gas, large thick layer of oil and no water layer they are in the sweet spot for sure or even an ALL oil layer with no gas or water observed...which would be the dream...they then need porosity and permeability...porosity determines how much volume...permeability determines how well how much of that volume can flow into the production string and up to surface...it will also require formation pressure greater then the weight of the oil to push it to surface, being this is virgin reservoir it should easily do that...unless when they produced the UMIAT just south of Merlin 1 until there is no reservoir pressure remaining, I don't think they are interconnected, but this is possible...

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