SP down about 8-10% on trading tonight so far. To be fully expected given the delay in clean up
and the withdrawal of day traders. Also an "open" timeline given in respect of completion of clean
up. I would have liked at least an update on the amount of downtime and restricted flow on 77H
in "days". 3 procedures were undertaken to improve flow. Now, if I had been told that these
operations amounted to 10 days of restricted and/or nil flow-back then I would have thought 15%
water recovered in 4 days or so would be where the well was at when it was flowing back strongly
after the first week. If the above procedures took only 3 days then 11 days to recover 15%.
Could take another 30 days or so before 100% of frac fluids recovered. If it took 10 days then
only 10 days away from completion on those figures.
So, in the light of no information regarding this {and pessimistically thinking that 30+ days to
complete clean up could be possible with maybe a jet pump to speed up flow-back} I sold half my
remaining heads today. Oppies are a no sell until results.
Joatmon also made a good point that NO proppant was recovered to surface, meaning that the
fractures remain open, they haven't closed up and emitted the sand/propellant. I think it is
evident that the light crude oil has "complicated" things a tad in respect of clean up, coupled
with the frac tree replacement and other work. It is I hope a nice problem to have. Wet wells
are better than dry gas wells.
Still believe in the story. One last hurdle regarding clean up before production testing can
begin. Hopefully we get to production testing in 2 weeks or less.
GLTAH
OEX Price at posting:
18.5¢ Sentiment: Hold Disclosure: Held
