I was a little disappointed with the announcement in terms of production volume. It certainly emphasises the natural decline features of new wells in these heavy oil fields. I would like to hear some more information from the company on when it is intended to introduce steam to increase production. It seems we did not meet the forecast 1200-1400bbl/d near term production target forecast in the June month report.
With facilities designed for 2000bbls/d we are only producing 1000. I assume that some capacity was built in for McCool Ranch which so far has not been producing/testing because of water disposal issues. It appears that the additional water disposal well mentioned in the latest report may be to allow decent testing/production from McCool.
Nevertheless, it is a very good story generally and I'm only wishing for optimal results which may be a little unrealistic.
regards DF
SAE Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
