Replies to post #2457 on GulfSlope Energy Inc (GSPE)

[Dreaminagain]

Just so I can rid of my chubby, NPV is not proven right? Just an estimate based on potential in the area?

[smith199]

In regards to Gulfslope’s September 2019 Johnson Rice Presentation. I believe only 2.6 MMBOE from the 8 MMBOE of the “Vermillion 375 Development” is “gross proven reserves”.
21 MMBOE is “possible reserves” off the “Vermillion 375 Exploitation”
The rest is “resource potential” until Drilled.

I believe also, 1P is Proven reserves, 2P is Proven and Possible, 3P is Proven, Possible and Probable.

NPV10 is one way to express net present value dollars to any referenced oil and gas MMBOE.

Smith

[smith199]

”W & T believes still sizable upside left in US Gulf of Mexico Mahogany field”

Source: Spglobal.com, S&P Global Platts online article, dated August 13, 2019 by Starr Spencer.

Excerpt 1 from S & P Global article:
“Pure-play US Gulf of Mexico operator W & T Offshore believes it has a lot more proved reserves at its legacy Mahogany field than is on the books right now, its founder and CEO, said late Monday.”

Excerpt 2 from S & P Global article:
“W & T, which operates in both shallow and deep waters of 560 feet to 7100 feet, mostly offshore Louisiana, has “significantly” expanded Mahogany’s size and depth since 2011 by Sidetracking new production locations, Tracy Krohn said at the Enercom Oil & Gas Conference.”

Excerpt 3 from S & P Global article:
“I believe we’re sitting on 100 million barrels of additional reserves that have not been booked as proved, he said, adding those volumes are more than the 33.3 million of proved reserves currently.”

Excerpt 4 from S & P Global article:
“The company has a roster of future Mahogany drilling projects in the P, W, and T thru V Sands, according to Krohn’s presentation slides. At least six pay zones have proven to be productive at the field.”

Excerpt 5 from S & P Global article:
“W & T Data-heavy focus paid off. Since 2011, W & T expanded Mahogany’s size and depth by drilling and sidetracking 13 new producing horizons.”

Gulfslope has expressed that the Tau and Mahogany fields have similar characteristics. “The Tau Prospect is analogous to that of the Mahogany field.” Source: Gulfslope’s 2019 Presentation, Page 8.

Tau No 2 “Current Drilling Opportunities 418 MMBOE prospect with 4.5 billion NPV10 (Net Present Value discounted at 10%).” Source: Also Page 8

Gulfslope continued with “ Strong drive mechanisms generate incremental production from 2P and 3P reserves with fewer drilled wellbores.” “Multiple stacked pays with better porosity and permeability.” Source: Gulfslope’s 2019 Presentation, Page 9, Lines 7-8

Hoping the Tau Prospect has the same ongoing future potential as the Mahogany field.

Perhaps after 9 months of drilling, testing, analysis, development and production of the Corvette Prospect ( all of VR 375) we will learn it has the future potential for additional sand layers, beyond the currently reported 100% working interest “Drilling Opportunity of 238 MMBOE with $3.8 billion NPV10” too.

Smith