FDM 0.00% 1.1¢ freedom oil and gas ltd

the facts and figures tell the story, page-19

  1. 8,720 Posts.
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    "many of the wells drilled 5 months ago have just halved" - thats what happens with these wells - its called a decline curve. Show me a single US onshore well that doesnt halve in the 1st 5 months.

    "many will never get put back onto production as they have proven to be uneconomic" - not all wells or leases are created equal. This is called lease exploration/development. the early wells will always provide the learning for the later wells, and at a cost of $250K/well (as opposed to $3-10M) the company can afford to spend some time finding the sweet spot in each lease, and optimising drilling parameters before scaling up production.

    Comments like those quoted above can only be one of two things:

    1. Expected, if made by someone not knowledgeable of the process, or

    2. naked attempts to pret on the fear of others if made by someone knowledeable of the process.

    Cheers, Sharks.
 
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