Originally posted by Kipper01
I can't get over that flare at T2: looks like burn off flares of excess gas you'd expect from Esso-BHP at the Longford Gas Plant in Victoria!!!! (allow for some slight exaggeration clear.png …clear.png
SB only received this pic a week or two ago he said (although the internet connection is not always good from the field apparently so it might have been taken a bit earlier - fits with my moon phase timing view) … In any event, by comparison it appears decidedly more voluminous to my eye, now some several weeks after the first pic's we saw. It's a bugger the extra waiting, but such is the waiting for flow rates. T3's extra frac fluids appears the delay. At least we have what appears straight forward flow back without extraneous liquids in the mix.... Have to get a solid 2000mcfd out of this, surely(!)....??? Kip
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Kipper
It is more than logical that the gas flare from the individual wells would increase with time as the volume of water declines. The water acts as a cushion and as it is produced to surface, the back pressure on the reservoir would decline to allow great gas volumes. This is normal practice in helping define the commercial volumes.
It is erroneous to see this as a delay, as it is more than difficult to estimate how long the gas flow is needed to reduce the water volumes to zero. When the water diminishes to an acceptable level, near zero, the flow test equipment and personnel can be mobilized to site and the testing via the equipment can commence. it can take time, but ask yourself, what is the rush?? Better to get the right result than to come to an early and incorrect conclusion.
Gas testing will allow for a commitment to installation of flow lines to the Santos facilities and reserve certification. Both of which are major positive milestones.
The commercial risk is reducing as we get lower water volumes and the play gains credibility. The potential upside is significant for patient investors. Those investors looking for a quick fix probably shouldn't be investing in these stocks.
Just MHO
Cheers, AL
