I would describe today's flowback update as cautious but...

I would describe today's flowback update as cautious but positive.

The good points are:
1. Light crude is flowing unaided and being transported and sold – this must be a significant quantity surely?
2. Frac water flow back continues with approx. 55% recovered – the more water recovered the cleaner the well (less water stored in the formation) and the better the oil can flow.
3. The demob of the coiled tubing unit – this means no more well intervention is expected and the well will not need further stimulation.
4. No proppant recovered – means the frac and prop worked well, the fractures stay propped and did not tend to close expelling the sand, and so will not inhibit production.
5. No formation water – a very good sign in any well as formation water tends to impede oil production.

I see nothing negative, although I am not sure if the production of light oil instead of the expected condensate is good or bad (probably neutral) and it is what the reservoir gives so Oilex will have to adjust their well and production plans accordingly. We probably need a couple more weeks for a clearer picture of just how good the well is.