Replies to post #16683 on Empire Energy Corporation Intl. (fka EEGC)

[invest2002]

if you expect the beginning of drilling in october 2010 how long they need time to move a rig to the place? until october it is only 2 month time

[rigman]

It is you who are wrong Howard, oil analysis is done in specialised labs using mass spectrometers and other specialised equipment and is not done onsite. There is no tool that you can lower down the hole that will tell you the size of the field and how much oil will be produced, an Extended Production Test (EPT) is required for this. There are wireline logging tools (for example Schlumberger’s Modular Dynamic Tester (MDT) that can give you an idea of permeability and porosity which will aid in planning the EPT.
IMO oil will not be produced on a regular basis for at least two years after the well has been drilled. There is a process that has to be gone through before oil can be produced this involves:
1) Completing the well. This involves perforating the well, running packers and running tubing.
2)Extended production test (EPT). This is done to help determine the flow characteristics of the well to determine what type of permanent facility is required. This will generally take at least 6 months to organise as some sort of temporary surface facility is required to handle any fluids produced and obtaining regulatory approval, particularly at Bellevue will take at least this long. The EPT will normally last for around 6 months. Some oil may be produced and sold during this period.
3) Production facility. After the EPT is finished the permanent facility has to be designed, approved and put in place. This will normally take at least a year.
It is probable that getting regulatory approval for a permanent facility could take significantly longer than a year as this would be the first time this would be done in Tasmania.