Ann: Cambay-77H - Flow-back Update, page-24

Charl, bobla, rustyd - a very well crafted and accurate statement by RM.
He had set the timing for this ann so was obliged to provide one. If he hadn't then all hell would have brocken lose and hurled at his doorstep by the same people that are going off now (lol), the usual i(n)mpantients, plus the market would have reacted negatively.

His initial observations stand and his statement about timings also stands "Oilex will advise the market of a stabilized flow rate via a production test once frac fluid return and clean-up operations have been completed"

Without a stabilised flow rate there are no reliable numbers - he may as well have provided a guesstimate on 21/7 - not worth a pinch of ..... Plus, if he provides any misleading unleliable unsubstantiated figures he'll end up in jail quicker that Jack Robinson.

"Flow-back started very strongly and continues at a steady pace, although the shut-in periods for changing the frac tree and checking the well bore have extended the duration" ....

1. During flow-back operations the following activities have been completed which have necessitated shutting in the well or limiting flow:
   • Change of frac tree to the standby frac tree because of leak issues
   • Completed two runs to the toe of the well with the coiled tubing unit
   • Preliminary build up surveys of wellhead pressure"

What this tells me is that they have been busy turning the well on and off for a range of necessary activities to be completed preventing sustained flows and recovery of fracc fluids etc - they have been unable to undertake any sustained testing over this 2 weeks to provide any reliable numbers.

Todays ann doesn't say that flows have decreased substantially or that there is a major pressure drop off.
For all we know the mix of fracc fluid/hydrocarbons could well be fluctuating from day-to-day as the well cleans up with fracc fluids being a minor component of the current flows, which may well be at approx the same rates/pressure as day 1.

But Ron can't say that because it would be unprofessional and because he doesn't have any reliable numbers even for OEX to make informed investment decisions, let alone private investors - so he can't really say anything and he'd be a fool to do so.

Re THs - if companies were allowed go into THs at every whim and fancy they'd be off market more often than they'd be open to trade. The onus should continue to be on companies to remain open to trade. No one is being disadvantaged over any body else by the company continuing to operate 77H and trade as normal - it is equally fair to all holders.