Last PB announcement stated that No 3 was providing 10% oil as it was unloading fracc fluid. With a conservative unload of 300 barrells pd thats 30 barrells of oil and 270 of fracc fluid. After 2 weeks at the same flow rate the percentage of oil should have increased and fracc fluid decreased. Even though the company stated this well had the new pump system that they will be putting into the first two wells the volume of water would negate gas locking problems so I expect flow of oil would be 100bpd by now.
A post this morning outlining the auction of land nearby in a few days as a reason why the company is not showing its hand could have merit. Interesting that GGP have drilled deeper in Reagan county than any company in one of the worlds most prolific areas. A small company strapped for cash spending more $ on drilling deep than anyone else. A big call which has given SG unique data.
A delayed share purchase plan has delivered cash just at the right time for a land purchase. With joint venture talks apparently being discussed for at least two months now, maybe the SPP was not going to happen until a decision to bid for more land in the companies own right saw the trigger being pulled. There must be a reason why the company announced the entitlement issue early december and sat on it until February.
GGP Price at posting:
2.0¢ Sentiment: LT Buy Disclosure: Held
