frac plan

Hi,
In fact, I'm kind of glad they look to be taking their time with the frac plan. This stuff is pretty important for the production prospects and they need to get it right. There's no denying there are still risks, and that may be a reason for (along with the panic) some experienced traders making a rather hasty departure on Wednesday.
You only need to check out the sp history of say, TSV to get a handle on this. Back a few months ago, they fraced their Warro 3 well (which had great test results but a tight gas formation)and got it badly wrong. Tried to use the existing natural fissures to facilitate the fracing and ended up fracturing the adjacent, shallower rock,which contained a lot of water. Water flowed along the fissures into the gas reservoir and made gas recovery even more difficult. sp had risen pretty high on expectations (3c +) but then dropped back to around 1.6c after the plan backfired. They are currently working on Warro 4 with a new frac strategy involving larger casing and avoiding the natural fissures.
So, you can see how important it is for FUT to get the plan right. This is definitely a risk vs reward play, so lets hope they have a good team on the ground and then, just be patient- they need to work this out to ensure and to optimise production.
You can also see why any traders who had recently dropped a bundle on say, TSV (which many think is still a reasonable gas play) would have headed for the hills at the mention of
tight gas formations and frac plans!
cheers,
JH