(5/29/2006 - OGI: San Diego) Chevron Nigeria today reported it has achieved a significant discovery in the Nigeria-Sao Tome & Principe Joint Development Zone, Block 1. Chevron said it, the Joint Development Authority, and its co-venturers Esso Exploration and Production Nigeria-Sao Tome (One) Limited, and Dangote Energy Equity Resources, encountered hydrocarbons in the Obo-1 exploration well. Drilled by the Transocean drillship Deepwater Discovery, the Obo-1 well logged a cumulative total of at least 150 ft (45 meters) of net hydrocarbon pay in multiple reservoirs and provided important reservoir rock and liquid samples, which need to be evaluated and integrated into the interpretation of the Obo Area to determine the next step of the appraisal process. The company said that, at this stage, it is premature to determine whether or not Chevron and its co-venturers have made a commercial discovery.
In April, however, sources at the Chevron Nigeria said Obo-1 could be the largest discovery made so far this year, that it could contain a billion bbl of oil or more. A company official said evaluation of drilling results showed, "It is an encouraging result - everyone is pleased." He indicated that the discovery could hold even more oil and gas reserves than the Akpo Field in Nigerian waters to the north of the discovery site, which is estimated to have recoverable hydrocarbon reserves of more than a billion bbl. Geological studies of Block 1 have also shown it could be about the same.
The Deepwater Discovery.
The Obo-1 well is located in 1,720 meters of water (5, 640 ft). Drilling was completed in 63 days on 15 March 2006. Chevron JDZ Limited is the operator of the Joint Development Zone Block 1 with 51% interest, with Esso holding 40% and Dangote 9% interest.
that's what i was thinking. So why the long faces on I-hub? irrational (and unmet) expectations? I certianly was hoping for a parade and klieg lights for the OBO-1 announcement, but it's completely logical that CVX would not do that if unitization is going to be necessary.
I know this is somewhat of a cart before the horse question, but--Why would unitization be necessary?
My guess is they were pressured to say something about Block 1 because of the rumors and public comments that had been made regarding it. They said what they had to say without lying. IMO
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