The ann. indicates early stages of drilling, keeping in mind...

The ann. indicates early stages of drilling, keeping in mind that 10000ft is considered a deep well.

Not knowing full details about this factor, i'll assume (not always my best quality) the contractors are using water based drilling fluids in the upper part of the well ie. to ensure protection of freshwater zones or aquifers.

Swelling in this area is pretty common and water based drilling fluids have been known to cause (greater chance) of swelling. The contractors will probably use oil based drill fluids in the lower parts of the well (under the freshwater zones) which have shown to produce a less chance of swelling.

The company has indicated this will add time and consequently $$ to the drill. They have also indicated they are starting indermediate casing, which will be used to provide an extra layer of protection and assist in controlling higher pressures that are often found in deeper formations.

So imhso, I'm not reading into this swelling as too much of an issue. The co is working proactively to get this well into production, and I'm expecting news very soon.