77H needs to show at least SOMETHING to justify another drill and hopefully a 2nd bigger and smarter well.
That's why it's critical for clean-up to finish within the next few weeks and a definitive production test to answer
many questions that remain. Once again, I remain of the view that the fracture program on 77H has been poorly
implemented in lieu of the 300% better than expected oil content {hindsight is a great thing}, accounting for
many of the problems that have since ensued. Further bad luck {?} with equipment failure and stuff ups have not
aided the process.
If 77H can produce a marginal commercial flow then I think at this juncture that would be an acceptable
result in lieu of my postulations above. It would at least pave the way for an additional well accompanied
by the inevitable CR. It would also breathe some life back into the options if a result from the 2nd well
could be forthcoming b4 SEP15.
All a waiting game now.
As a comparison to how things can go right, TPD announced today flow-back operations from there
OL 1H well in the Olmos {EFS}. Fracture stimulation underway on 8/10/14. Today {6 days later}
announced flow-back of 986 boepd.
The well was connected to well test equipment for flow back operations on 10 October 2014. Talon has been testing the well for approximately 76 hours on various choke sizes with a maximum reported rate of 744 bopd, 1,452 mcfd (986 boepd), 1,800 bwpd on a 22/64 inch choke with a flowing casing pressure of 2,700 psi. This peak rate was achieved over a 2-hour period in response to adjusting the choke size. The-24 hour test prior to peak production was approximately 886 boepd.
Disclosure ; I hold TPD {thank goodness} as well as OEX options.
GLTAH
OEX Price at posting:
8.0¢ Sentiment: Hold Disclosure: Held
