GDN 0.00% 1.7¢ golden state resources limited

all still rolling along

  1. 254 Posts.
    G'day all, I don't normally post on HC but someone asked me to, he thought this may help.

    In the previous ann we had a flow rate of about 700,00cfd when frac fluids were being pushed up. We were all warm and fuzzy about this because it is reasonable that the show could not be fully opened up for fear of wrecking the top assembly from abrasive proppants and so that it would allow frac fluids to leak from fractures.

    In this ann it appears nothing much has changed. The well is still not cleaned up and still contains frac fluids and with that, a considerable volume of proppant. Although the exact composition is a patented trade secret, proppant normally contains bauxite and ceramics, which you will also find as the active abrasive on sandpaper.

    I have been informed that it is impossible to fully open a well for max flow rates whilst there are significant amounts of proppant still present in the well or the sand will cut the crap out of the top tubing and the choke assembly. Todays ann reflects that and therefore it is more of the same where management is badly informing and failing to properly explain the process. It does not fit that we have had a flow of nearly 3mmcfd previously for 17hrs and now a much lower rate for 24hrs, particularly with the demonstration of rapid build up.

    A negative aspect of naturally flowing back frac fluids is that it takes longer and the high risk of damage from abrasive proppant. Probably needs a coil when most of the remaining fluid is removed to get the show cleaned up.

    I am sure that this ann was not intended to be indicative of potential flow rate, merely an activity update which was supposed to relate to us that frac fluid return and cleanup continues and will be folowed by production flow tests. The ann is also the wrong way around, where it should read in this order: *return frac fluid *clean up proppants *shut in the well 72hrs *commence flow tests. Its all happening but it shows a poor communication between the rig operators and the management - they are reporting what they think they are being told. I would suggest that an office lackey put this ann together and it got rubber stamped. About time they get their act together!

    In any event, someone will ask the question and it should make the meeting good entertainment value - almost worth going.
 
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