Just before we get the QR (and in case maths wasnt your best subject) then consider a 2013 Beibu well that was originally producing at" 100 "bopd 5 years ago and gets a workover in the first Q of 2018.
Say its production in late 2017 had fallen by 15% to 85 as it progressively "gummed up".
Say the production is restored to 100 as a result of the workover(the reaming of the well,and probably other maintenance matters that couldnt have been remedied unless the well had been taken out of production).
Thats a 17.6% gain on that wells production contribution that is in the QR we are about to get.
Now speculate,just a bit,and allow for a 5% rise in the oil price.
Recast the figures and it comes out as an improvement of 23,52%. on current revenue
Now do the sums again and instead of the 15% fall the fall0off had been 20%.
The 23.52% figure jumps t0 31.25%.
The fall-off rate at Beibu is unknown (to me) but" 15%" is sometimes a lot more than that.
I repeat that the benefit of workovers of all 15 or 16 Phase 1 wells s over 3 years is almost ignored,at the moment,by most HZNers and potential HZNers.
If HZN wanted to give the SP a bit of a rev then some figures of early workovers results would likely put a bit of shine to the SP.
HZN Price at posting:
6.6¢ Sentiment: Buy Disclosure: Held
(20min delay)