"There will be a production test period of these intervals before fracing the Spraberry Dean intervals."
18 March ann
Key Points
?* Funding now complete for the current Permian Project work plan.
?* The #5H well will undergo frac’ing at the end of this month with preliminary work starting this week.
?* The #1 and #2 wells will be put on production from the Wolfcamp/Cline intervals within the next two weeks. There will be a production test period of these intervals before fracing the Spraberry Dean intervals. This approach will provide production data important for the continued development of vertical wells especially in the Cline interval.
?* A request to extend the key leases for 90 days has been proposed under our current leases.
?* Surveying work on the #7 and #8 vertical wells along with a horizontal well has already begun. Drilling the vertical wells is planned for May/June.
Funding
Funding for the Permian Project’s current work plan has now been secured with the completion of the A$ 3.2 million Entitlement offer and the A$7.5 million facility provided by The Australian Special Opportunity Fund, LP, a New York-based institutional investor, managed by The Lind Partners, LLC.
These funds will be primarily used for the Permian Project.
Can someone please help me as I am missing something here. I read this as that they did have the money for the little loose ends like fracking the vital and best performing interval's, the Spraberry/dean to improve the coy's cash problems.
This statement is from 6 days ago.
The SRH #1 and #2 wells are on production but only producing from the Wolfcamp intervals as the Sprayberry Dean intervals, the most productive in vertical wells, have not been frac’d primarily due to funding constraints.
$200,000/stage for the frack extensions ??
The #1 and #2 wells are currently producing from the Wolfcamp,Cline and have only the much shallower Spraberry ( lower Spraberry from memory ) and the Dean to frack.
As I mentioned, I thought the money was sought, attained, allocated and the frack extensions which would give you a greater return were all but done, until 6 days ago when they didn't have the money ?
So they had the money to drill #6 ( which will probably not produce because of finance constraints ? If they don't have funds for #1 & #2 they definitely cant frack #6 ) but unfortunately came up short on funds for the greatest chance of increasing their income #1 & #2.
Am I reading this correctly ? I would appreciate any assistance here if I am mistaken.
