Hi allI have received a couple of emails about concerns of the...

Hi all

I have received a couple of emails about concerns of the cost of producing oil from well PTA-3 so i have had another look at it and thought i would share.

If you have a look at the photo of 330 on the latest investor update report
http://www.erohydro.com/announce.html
It shows a standard Christmas tree or well head as shown below pumping from the well into the truck. Not sure if this photo was taken when they had the oil inflow at 295 meters or when they reached final depth of 650 meters


There are two types of these pumps one on the left is for a flowing well and the one on the right is for a pumping well
If there is not sufficient reservoir pressure to cause the oil to flow naturally, pumping equipment is installed at the lower end of the tubing. But at a guess i would say if they have to pump it it will only be a small piston motor or electrical motor driving it because of how deep the well is.

But remember they did experience a gas kick at 171 meters and an inflow of oil at 295 meters so there must be some pressure there.

Also worth noting that they only drill to 650m so using Enhanced Oil Recovery which adds a cost of between $15 to $20 dollars a barrel you would think we would be on the lighter side since the well is so shallow.

I also found this
http://digital.ni.com/worldwide/bwcontent.nsf/web/all/DADAB918808073258625732A0001FEF7
So they have some good technology already in Brazil for improving oil flow rates.

Hope this helps guys

Cheers

Ciggys