this comment from a bull speaks volumes, and precipitated more selling in London as he is a highly respected poster
CaptainNelsonForties - 3 Aug'10 - 13:40 - 16565 of 16577
Smart,
I was in for Texas and post frac the results of the well only gave an increase of 1mmcfd. So the production index of the well only increased marginally even though the rest of the pay was fracc'd. Regardless of the choke size the operator has deemed the well as being at risk of over production at rates in excess of 4mmcfd and 320bopd approx. Clearly the reason for opening up the additional pay was to increase flow rates. If the reservoir isn't capable of sustaining higher flow rates without getting fluctuation of downhole pressures associated with over production then its not a great sign. It shows that the fracc' hasn't really contributed much. With Texas being the main back up for the price at the moment its not looking overly rosy. I entered here for Texas, I rarely ever mention their other projects in any depth. I invest mainly on reserves and production.
As snurkle rightly put it the other day, as she is a director of a co. If a well is good it gets its own separate RNS. When I heard that the Smith and RB results would be put into quarterlies I had a good idea that things weren't all roses. Puntland expires in January 2011 unless they get another extension. Many here bought at prices sub 3p and have 2.9p shares including larger institutions and sophisticated european investors. Many are sitting on/banking considerable profits. Any one of those could be reasons that some may want to or have been banking profits since 7p (or perhaps they're just the T traders ;)). Its not really possible to gloss over the fact that pre and post frac rates on Smith are practically the same.
Captain Nelson Forties
RRS Price at posting:
10.5¢ Sentiment: LT Sell Disclosure: Held
