@qajjaq"I do wish they would provide clearer information"I...

@qajjaq
"I do wish they would provide clearer information"

I agree, I would prefer to read statements from Halliburton detailing exactly what went wrong and I would like to know how long it usually takes to mill out a bridge plug setting tool if that is the only solution.

If it is going to take days to mill out the setting tool, then it might be better to forget about the deep high-pressure zone in this well and concentrate on fracturing and flow testing the tight gas sands and the fractured coals. It might be the best option given that time has already been lost and to keep costs within budget.

I believe there is still a high level of risk, which is why I believe 10c -12c is too high to be investing at the moment. Closer to 8c would be more reasonable. In my opinion, EXR has been misleading in stating that they believe the deep high-pressure zone will flow at commercial rates (> 2.5 mmscf/d) based on their simulation predictions. The reality is that there are several factors that can lead to poor well performance such as a limited size reservoir and how much of the 17m gross sands are net pay. I recommended flowing the deep high-pressure sands as an extended flow test in order to determine the size of the reservoir, but the duration of the flow test will be governed by the permeability and thickness of the net pay. It might take too long (weeks or months) to detect the boundaries of the reservoir. In addition, there is no guarantee that hydraulic fracturing of the high-pressure zone will create a successful fracture (skin factor of at least -3) with good width and half-length. What we get in reality can be quite different from what we have forecast from a frac growth simulation model.

Another source of risk is the fractured coals. NY said they are higher risk compared to the tight sands (with reference to one of the short presentations), but GC said that the fractured coals should perform well (are there analogue fields of deep fractured coals which he can refer to?). I would therefore prefer to invest at a price that reflects what appears to be significant uncertainty and risk.