Ann: SM 71 No 1 Well Update,OEL-BYE.AX, page-4

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YeOldDan

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13/04/16

14:09

Post #: 17493238
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Originally posted by ibis89 ↑

Wonder if they will go back to sm6 once they collect the cash from sm7. Any thoughts?

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Not sure, although this was posted on the OEL forum by @crabbe21:

Dear Kristopher
Thanks for your queries below and I hope that I can answer them in this e-mail. If you have any remaining questions, please do not hesitate to give me a call.
The issues encountered at SM-6 #2 at the ~8,050 feet mark prevented the well from being deepened to the primary target interval in the G20 sands. The bottom hole assembly became irretrievably stuck down hole and was unable to be recovered on two occasions. The interval that was being drilled through appears to be preventing the BHA from drilling forward and at this stage there does not appear to be a solution on how that section can be drilled through.
This is quite disappointing given the results already encountered in the well and the promising results from above the primary target. Without a clear plan and solution to the current drilling issues, we would not find it an economic use of shareholder funds to return and re-drill the SMI-6 opportunity. The farm-in transaction with Byron Energy was structured so that we had a number of discrete and distinct opportunities that could be pursued so that we weren’t relying upon one opportunity to be successful.
We have the opportunity with Byron to drill a substitute well at SMI-6 but it would take something significant in the way of new information for Otto to be convinced that it is the right thing to do.
Kind Regards
Matthew Allen Managing Director and CEO Otto Energy

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BYE Price at posting: 11.0¢ Sentiment: Buy Disclosure: Held
4 Upvote

0 Great analysis

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Ann: SM 71 No 1 Well Update,OEL-BYE.AX, page-4

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