As BPT and ADE digest the Ann. I think many get hung up on the decemember start of Encounter for stimulation. So i reread previous Anns. Heres wat i got.
The Encounter-1 shale well has experienced completion delays as a result of a well bore mechanical issue. During final checks of the recently installed stimulation work string, some adjustments were found to be necessary. While attempting to recover the work string from the wellbore, difficulties were experienced in removing it from the downhole latch assembly and it appears additional equipment will now be required to resolve the issue. This will likely result in a delay in the stimulation activities of Encounter-1. There will be no impact on the shale gas pilot production program, set down for early 2012, as a result of the likely delay in the Encounter-1 flow stimulation. Indeed, this now provides Beach with more time to assess the results from Holdfast-1, from which it will be able to optimise the flow stimulation of the Encounter-1 well should it be required.
So yeah.. no impact on pilot production program. Only data gathering. I guess with Holdfast and the previous coring results, they can pretty much book the resources. This test run was mainly to see if it is fraccable.
ADE Price at posting:
11.5¢ Sentiment: Buy Disclosure: Held