As per the previous qtly they perforated 98’ of sands in tex mis 2&3 and the performance was as per earlier perforation i.e. liquid yield between 40 and 45 barrels per mmcf. Today’s release indicated perforation of 189’ in tex mis 1,2 and 3 - looks like the additional perforation in tex mis 1 which looks like a higher water saturation sand. Just assuming that good zones (I .e. 2,3) produce half the gas of 5mmcf then these would produce approx 200 to 225 barrels while the other liquids ie between 55 to 80 barrels coming from water saturated zone. This seems to be very good outcome as they now know the full 330’ sands are productive. The reason they have done this to accurately forecast reserves. We will be surprised for sure in July!!
OEL Price at posting:
5.2¢ Sentiment: Hold Disclosure: Held
