Not the Ann i was hoping/expecting but hey, the world don't skip to your beat I suppose. I think you probably summed it up
as well as anyone Chill. I don't think it wise to try and read the "tea leaves" on this one as quite frankly, there is little to
read into. One can only make some observations.
1. No updated flow rates of light oil recovered pursuant to 21/7 ann. In the last 2 weeks then the well has been shut in completely
or reduced to a limited flow. Frac tree was replaced, coiled tubing unit has been run to the toe of the well twice and preliminary
surveys of well head pressure have been instigated.
2. No aggregate time given for shutdown or restricted flow whilst these operations were completed. As Chill stated, the flow rates
could still be the same as those given in the 21/7 ann. 40% of the frac water had been recovered. To this stage now, only 55%
of the frac water recovered. Previously, about 5% of frac water was recovered per day. If one crudely extrapolates from that then
maybe maybe over the last 14 days, the well has been able to flow "unrestricted" for only 3 days so nothing extra to report.
"Light oil continues to be recovered" but maybe only 3 days worth subsequent to the 790 barrels recovered over the 1st 7 days.
"Gas continues to be flared".
3.Charl ; Condensate is lighter than crude oil, but heavier than natural gas liquids. Oilex states that " The well planning including flow-back and clean-up was predicated upon gas and condensate and the recovery of crude oil and gas may influence the duration required for Cambay-77H to clean-up prior to commencement of any production testing ". I take it that more of a mix of condensate
was expected with the gas rather than pure light crude oil. This would have influenced their decisions regarding the composite of
proppant, frac fluids etc going into the well. I am no expert here but obviously if they were expecting more crude oil rather than condensate then the composition of the fracc fluids would have been different in order to expedite better flow back.
4. " Flow-back started very strongly and continues at a steady pace ". Started very well indeed, 40% of frac water recovered
in about 7 days. If it is indeed recovering 5% of fluids per day {since the above operations were completed} then maybe only
a further 10 days or so until clean up is complete. " Completed two runs to the toe of the well with the coiled tubing unit ".
All performed on a live well, there are a number of well intervention operations that can be achieved via coiled tubing. These include cleanout and perforating the wellbore, as well as retrieving and replacing damaged equipment. No damaged equipment needed
to be retrieved so they've done this in order to further cleanout the wellbore. Coiled tubing unit has now been moved off-site.
5. As Chill stated, no drop in pressure has been reported and no formation water production is occurring. If any of these
circumstances were to occur then it may be necessary to install a jet pump to facilitate additional liquid recovery. The well
at this stage still appears to be recovering fluids under its own natural pressure.
6. As per script so far, a steady as she goes approach. My only concern from here would be if it doesn't start retrieving
those fluids at 5% or so a day and point 5 may have to be implemented.
GLTAH
OEX Price at posting:
18.5¢ Sentiment: Hold Disclosure: Held
