Wow, what an absolute overreaction by the market and it's plebs.
- Let's start with SOAII: the results extrapolated for a 20% oil cut at 10 barrels of fluid per our gives us approximately 48BOPD. Now, this is while they were testing the well, therefore the well would have been choked back etc. so they had the desired environment to test the well effectively, any geo want to say yay or nay on this would be much appreciated. Now let's also take into account that while the were testing the well they were getting approx 48BOPD (extrapolated), which in itself is a good result for the first conventional well in this play, as I've seen the comparisons to MAD of late, isn't this around the flows they are receiving from there conventional wells? They will now be fraccing it, now we know there is already a good amount of oil there that will flow to the surface freely, what do you reckon will happen once it is fracced, I'm no expert oiler but I reckon it may free a significant amount more of oil up to flow to the surface. So for me, a very positive update on SOAII.
- Defender: well what can you say about this, very negative to say the least. However I think the writing has been on the wall for a long time with this well.
- Australia II: another step forward with this well. It has produced at approximately 158BOPD over the 16 days. Last update it was producing at 146BOPD over 8 days, although it said that oil rate was decreasing. Although it looks like the oil cut has increased, a good result thus far. As the company has stated, with its short lateral & smaller number of frac stages it is very comparable to surrounding wells. I think this shows that at the very least our Eastern parts of Roosevelt will be viable.
- Now to Gretel: well what a surprise, no significant oil. As I said in a recent post, I do remember some saying that the Brockton Fault zone could be a problem, it looks like the case. Some will say that there has only been 1/3 of the frac fluid retrieved, but I reckon we should have seen some significant oil by now if there was a bit down there. I spose there is still hope, but I am not holding my breath.
All in all, yes some negative aspects but there is also some positive's in their as well. IMO a completely irrational overreaction by the market.
Cheerio
SSN Price at posting:
5.6¢ Sentiment: Buy Disclosure: Held
