To investors, i have just read this excerpt on the GGP thread by OilGoldGas and find it to be quite relevant in the situation the JV is in. Please have a read.... -----------------------------------------------------
With gas / condensate together, you need to run high psi to get the condensate to flow. Simply going to bigger choke will not only, in most situations, cause less condensate flow, but can initially be very dangerous with pressure kicks. Which is one reason, testing is taking so long and they are being so cautious. It's much more dangerous then throwing a big choke on a dry gas well.
To move to the next interval they have to concrete this one, so its understandable why they want to thoroughly test it on a range of chokes and take the time to let each choke stabilize, rather then constantly shutting off and re-opening.
The longer these guys take on this the more it is likely to be commercial. The costs of playing aimlessly with non commercial intervals is not worth it. If they thought this was non commercial interval, they clearly would have cemented it in and moved somewhere else in the 300ft of potential pay. People are seeing this as a negative. They are wrong or have no knowledge of how it all works.
There is still a big chance this interval is good and there is a much bigger chance one of the 5 other zones over the other 290ft is even better. Especially up around the primary target of oil.
VIL Price at posting:
4.3¢ Sentiment: ST Buy Disclosure: Held
