Good program, no doubt about that. Good spread of to-be-drilled wells and seismic lines. I like the positioning of all optimizing on current knowledge/beliefs. 13 wells mentioned plus pilot. Generally a pilot test consists of 1, 3 or 5 wells (more if one really wants to go nuts). Uneven numbers to be able to optimize on positioning of the wells and to extract maximum data. If EXR wants to stick to a 2 well pilot, that would add to the 15 wells, more pilot wells adds to the total (duh). I get the impression that the pilot wells are not included in the current list of 13. Only curious if EXR has secured rigs, how many. Also what their view is on the impact of the pandemic on operations, but I guess that would be anyone's guess. This will no doubt be updated in the next quarterly.
PS I would think that two pilot wells would be the minimum, testing for productivity of each, interference between both, and maximizing depressuring the coal seams to enhance gas production, still, an uneven number would add more detail in the direction of interference between the wells making it possible to optimize future development well placement. This will also be of value for their dynamic (MOVE, Petrel, Eclipse) modelling.
EXR Price at posting:
17.0¢ Sentiment: Buy Disclosure: Held
