abunda#1-21h horizontal placement

Trader I was wondering if you had heard of the impact that the placement of the horizontal section of a well in the target formation has?

A few months ago I had found an article talking about the need to place the laterals high in the formation to produce good IP's due to the high level water cut in the mississipian formation, from memory approximately 60% of volume was water.

The article showed that when wells were placed too low it could take months to dewater the well much like a CBM well before any commercial flow rates occur.

It is interesting that the company is stating that "the high fluid level in this well and the resultant pressure on the productive formation, the Company has not yet reported a peak flow rate. This will be reported when the Company has established that the fluid level has been sufficiently lowered to enable the well to unload."

If this well was a CBM well it would have been good news as high fluid levels typically indicated good porisity and permeability and long term productivity.

Would love to know what fluid flow rate this well is doing and the rate of hydrostatic head decline.

The problem the company has that it inferred early on that the mississpian formation was hundreds of feet thick filled with oil and gas no mention of the water cuts other than the water disposal well required.

Time will tell