I haven’t read the quarterly yet. I believe we should all be careful of what we think when we read the term “initial production”. As it hasn’t been defined by BNL specifically I believe they are actually saying they will have at least one well “in production”; this has a specific meaning in the industry that simply means, something along the lines of “we have a well that is producing the product we’re looking for” and nothing more. Nothing to do with refining it, bottling it or selling it. Having a producing well is great but don’t confuse it with producing a final product that is ready for sale unless we are lead to believe otherwise by BNL. The first sale will be quite a bit further off I’d wager.
from law insider:
Production well means a well drilled, deepened, or re-entered after plugging, for the exploration or production of oil and/or gas or brine; or a well drilled, deepened or re- entered after plugging for a water supply for use in connection with an enhanced oil recovery project.
Initial Production means the early production of an oil or gas well, recorded after the recovery of oil or other fluids used to fracture and stimulate the target formation has been completed, used as a potential indicator of the maximum ability of a well to produce upon Completion, without subsequent reservoir damage; provided, however, that historically, the actual sustained production of oil or gas realized from a well is usually less, on an ongoing basis, than Initial Production; and, provided further, that there can be no assurance that the actual production to be realized from a well on an ongoing basis following the conclusion of all Completion activities with respect thereto will be equal to approximate Initial Production.
also, I think from memory that “first production” was a milestone required for director performance shares to be issued. So I expect the bar to be the lower of whatever meaning is possible.
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