I think this is a good summary for anyone who is confused about the markets over reaction today.
“Remember, the B65 oil pool and production is a nice add to the primary D5 sand accumulation. If we look at the production performance from the B65-G sand wells in the SM73 Field, which BYE and OEL used as an analogue to the B65 sand in SM-71, production rates at SM73 Field (B65 sand) are in the hundreds of barrels of oil per day and not thousands of barrels of oil per day, although in later life they approach 1,000BOPD as the wells are further optimised. Yes, SM71 has modern down hole completions, when compared with those deployed at SM-73 back in the 1960-80’s but they are a guide to likely longer-term reservoir performance and production which is primarily governed by reservoir rock properties e.g. permeability and longer-term reservoir pressure and eventual water cut. I’m satisfied with these initial flow results although believe announcing to these rates to the market during the initial period of “flush production” from the F2 well B65 sand at 1,000+BOPD, was premature and today the market has reacted accordingly. Below are some diagrams that may be of use to readers. Too me, production from the B65 sand in F2 will likely stabilise around 300-400 BOPD if the FTHP (flowing tubing head pressure) does not continue to decline --- it’s very early days.
When F3 well comes on line, in my view we’ll be approaching the 4000-4,500BOPD combined rate from all three wells. I’m buying more shares on this price pull back.
Kind regards Old Geo”
BYE Price at posting:
40.5¢ Sentiment: Buy Disclosure: Held
