Ann: Operations Update, page-55

db:
Why would the stress profile/high pore pressure make them decide to not bother with the micro-stim?

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B'coz reservoir pressure is y'r friend when it comes to flow (ie psi/ft.

If it was a conventional reservoir u'd look at porosity, perm etc which should b there from the wireline logs.

Imaging Tool scan of the formation should have given them a good idea of the zones with fractures etc (ie pathways) & the stress profile around the wellbore. These zones r the ones that frac easily (since the matrix is low in clay & reasonably high in silica hence the 'brittleness' - 5 second elevator pitch on Rock mechanics 101) act as pathways for fluid to flowback.

They've saved a bit of time & money by avoiding the microstim. Pressure data is usually attained from a MDT tool (ie psi/ft) when a fluid sample is collected in a Sample Chamber & then analysed for its GOR, Specific Gravity etc. They haven't reported any GOR yet, so will b interesting to see the final ratio post testing.

They've also mentioned during IW#1 about Over pressure. So given the depth & matrix of the HRZ which should b same as IW#1, high stress conditions which makes it easy to frac, presence of organic matter & any gas seen during drilling etc, they see reasonably confident about skipping the micro-stim's. So fingers crossed for a safe frac job.

Next few steps r straight-fwd.

- They'll get the trucks lined up once a Test interval is selected & all OK is received from AOG,
- Start pumping the frac fluid (ie xx bbls/minutes) to create the reqd fractures &
- Shut the well in,
- Let the pressure buildup,
- Monitor the pressure on the well head
- Then come back in a few days & open the well
- do a flow back thro' a small choke size setting
- collect all fluids for PVT analysis etc & update mkt about bopd's etc

Choke sizes for Shale flowbacks r crucial, as u dont want to crank up a 1" diameter (ie 64/64) choke as that will stuff up the reservoir (ie give a rapid decline).

Norm these days is to go for a 10/64 or 22/64 setting should b optimum, although they'll try all sorts of choke settings & settle for the optimum one to avoid rapid reservoir decline. Hope this helps. GLTA.