ash creek oil cut rises, page-8

DJ
Clearly the production test results of the upper Shannon were not reflective of the longer term sustainable rates. The upper Shannon was higher pressure than the lower Shannon so would be contributing the majority of the flow and having previously been waterflooded it appears we are now getting mainly water.

I cant help but think the upper Shannon is too depleted to be a worthwhile target for chemical flood at this stage especially considering the cost involved(interest in field). My feeling would be to concentrate on water flooding the lower shannon where there is expected to be 1.8mil barrels recoverable from waterflood, which is significantly more than is recoverable from the upper shannon waterflood/chemical flood.

"I am aware of the potential but was optimistic the water flood would have achieved better than 15bopd by now"

To put it in perspective 1.3million barrels of oil was drawn from the lower shannon and probably a heck of a lot of water was also taken out and pumped into the upper shannon thus significantly decreasing its pressure. So far we have only replaced those multi million barrels of fluid withdrawn with 60k barrels of water reinjected, so at the current rate it will take plenty of time.

Although we are short of cash 200k to bring on another well and increase water injection into the lower Shannon may be well spent...
Cheers