re: Ann: LNC Completes Higgins No18 in Texas...
Well it is good to see the oil flowing. 144bbl per day doesn't sound much in the big picture, less than one road taker per day, but it depends on the depletion rate. They quote an equivalent well up dip, therefore better potential having produced 266,000 bbls which is approx $26mil for an approx $5mil well. I hope this is the case.
As for the well being set up for max flow rate, I have to disagree. The choke is only 12/64s or less then 1/4 in. If the choke had of been 1" or greater I would have agreed. They don't mention any gas or water production so I have to assume there is none, therefore the 340 psi well head pressure sounds quite good for nature drive in a low pressure system.
They state that this field was discovered in 1918, but I have a hard time believing anyone found oil pre-salt with deviated wells in 1918. So hopefully this current zone is relatively virgin and therefore still has some significant primary production left.
Now lets hope we have 2 or more drilling rigs contracted and we can crank out another 20 of these wells by the end of next year to increase ERGs production from 3000bpd to 6000bpd as PB has stated.
I can't believe that Linc wouldn't be looking at the Texas deep Lignite resources and whether they could be turned into CO2 for EOR. There must be a ready market for CO2 even if Linc's oil fields are not suitable. I will have to wait and see.
LNC Price at posting:
$2.00 Sentiment: Hold Disclosure: Held
