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Re: TexasDriller post# 20044

Tuesday, 03/22/2011 5:06:30 PM

Tuesday, March 22, 2011 5:06:30 PM

Post# of 42999
Hi Texas,
IF any oil was found in Bellevue IMO it would take two years before any significant revenue could be raised. There is no infrastructure in Tasmania for oil production so everything would have to be done from scratch. Once the well was drilled they would have to do an Initial Production test (IPT) to determine the rates that the well could produce and the type of fluid. As only small volumes are normally only produced at this stage the regulatory requirements are not to strict and it should only take 6 months to get this done. After the IPT companies will normally do an Extended Production Test to determine the reservoir character and area that will be drained by the well. As the EPT normally lasts for 6 months or so temporary facilities will need to be put in place to store the oil, separate any produced water and safely transport the oil to a refinery. This process will take at least a year and the costs involved usually far outstrip any revenue from the sale of the oil. Once the extended production test was completed and the reservoir character determined then a permanent production facility could be planned and built which would take a minimum of a year. Just meeting all the regulatory requirements will be a major problem as Tasmania is a very Green state.

Two years before significant revenue may be very optimistic!
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