Jewell,Rangers,Flames transformational effect, page-3

Thanks @danpech

I think there has been a lot of confusion about the "Drilling Process" and what "Spudding" actually means. I have tried to break it down, let me know what you think.

Whereis the company at?
Once Spudding has taken place (Spudding a Well refers to starting the rotary drilling operations forthat well), the company now needs to drill down to the target debt (myunderstanding that it is ~14,755 feet(~4.5 kilometres). Based on the historical timeline provided this could take upto one month to complete. The Company will be adopting the Sycamore formation method of horizontaldrilling which is based on nearby producers including “the Casillas Operating,LLC. operated Flash 1-8-5MXH well (located ~3-miles west of the Jewell DSU) hasproduced ~580,000 BOE in approximately 19-months, considerably higher thanBrookside’s conservative estimate for the Jewell Well”.

Once the casing has been run and finalised, I believethey will pump cement to fill the space between the casing and the rock/grounduntil the well has been completely drilled and formed. At this stage, thecompany will have a much clearer understanding of the BOE and what theproduction numbers look like. This is where we should see an increase in SP.

The next step is where the well is shut-in, and the rig is movedoff location. Following the relocation of the rig, the company will finalisethe remaining tasks to bring the well into production. Based on the timeline, thesales will commence in late July. This is where if all goes well the SP willrocket. IMO the company has under estimated the BOE.

Why is BRK different to 88E

Besides the well-known 1,309 reasons, 88E failedvery early on:

“The secondrun of the program was designed to take samples across these zones. Initialobservations indicated the presence of an oil signature in the fluid using anoptical fingerprint sensor in the downhole sampling tool, after communicationwas established with the reservoir in the deepest zone of interest. Slugging ofhydrocarbon and water then occurred, which is often a precursor to hydrocarbonflow from the reservoir, however; a power outage due to equipment failurenecessitated pulling out of the hole for repairs prior to any sample beingobtained. After repairs were completed, the run back in hole encounteredseveral sticky sections, indicating poor hole condition so a clean out run wasundertaken. Re-entry with the sampling tool was then executed to move to thelowest zone for testing but good communication was not able to bere-established with the reservoir despite observation of a similar hydrocarbonsignature on the optical fingerprint sensor. The time the hole had been openand consequent potential formation damage may have contributed to this issue. “