In the past RXP has proven to be a serial disappointer. I originally invested in RXP for the potential of the BNG acreage which is adjacent to some giant oilfields. It was thought that BNG likely had some undiscovered giant oilfields.

Back in 2011 a CPR was published that suggested there were around 900m barrels in 37 prospects and leads, thus having any giants was dismissed and to me put a real dampener on things.

In the following years funding for drilling by Canamens never came through and it looked like goodbye BNG and all the potential. However a single investor then came to the rescue farming in for 35% of the equity over a period of time at a price of 7.4p per share. This was at a large premium to the then share price, something that is almost unheard of.

This year RXP drilled the first pre salt deep well A5. The well was drilled to a total depth of 4,442 meters. Casing was set to a depth of 4,077 meters and the core sampling revealed the existence of a gross oil-bearing interval of at least 105 meters from 4,332 meters to at least 4,437 meters. The well was intended to be drilled to 4700m but drilling had to be stopped due to high pressures encountered, 7000 psi at surface thus really heavy drilling mud had to be used.

Subsequently a drill pipe got stuck but light oil flowed to the surface (43 API with low sulphur) at an approximate rate of 2000 bopd over a short duration. Coiled tubing was inserted to aid clean up but they had a generator failure followed by the tubing getting stuck. Remedial action is being undertaken to remove and replace the coiled tubing, though there is a possibility that clean up will work unaided due to the high pressure.

Following clean up a 30 day test will be carried out WITH the stuck drill pipe in place.

Now to the really interesting part.

Previously RXP had announced that they would spud A6 a small step out from A5 next. However they are now going to drill 801 an 8km step out on the same structure with a spud date of 15th December. Yes I did say an 8km step out. More they have contracted Sinopec for…

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