When I first read this I was quite happy the well had improved from 5 BOPD to 18 BOPD.
Then I got annoyed that a well less than 2 years old had dropped down to 5 BOPD (from initial IP 30 of 46 BOPD). Does not look like good economics / IRR to me!! Seems like a pretty steep decline rate....
Then I read the Novas Energy web site and it seems that the technology is about unblocking the fractures so the oil can flow better. Its not a case of the oil running out causing flow rates to drop. So the pores have been unblocked and the oil is flowing well. 18 BOPD would be hardly any decline at all compared to the long term stabilized flow rate.
Interestingly the tech can only work for vertical wells. I wonder if there is a similar application for horizontals? How would RFE / SEA overcome similar issues? - anyone know?
AOK Price at posting:
13.5¢ Sentiment: LT Buy Disclosure: Held
