Timber, the NSA wells were shut down in the June quarter for scheduled maitenance which would largely account for the dip in that period.
As for the September quarter I have not asked the question of the company but as the cyclic steaming programme is now fully operational I am guessing roughly one third of wells are off line at any point in time assuming the individual wells are staggered in their steam process.
Like you I had hoped to be back at 300bopd by now with advances coming.
I have searched various info on the San Ardo field and it seems it takes quite a while to heat the reservoir...as in a couple of years to see the real gains. Gains start off very slowly and then gather momentum to their peak.
While it does seem to be taking longer than any of us were aware of the upside is good in that its not just production but the recoverable oil can jump considerably. Chevron is achieving up to 70% recovery on full steam flood (this method will be used at NSA once cyclic steaming has preconditioned the reservoir.)
Neon by my calcs is roughly recovering a little over 30% so ultimately reserves may double. Seems small by comparison with our Vietnam targets but it should make for a very healthy income from NSA, perhaps more like $4-5M a quarter. Not to forget Glau will hopefully add to this.
NEN Price at posting:
29.0¢ Sentiment: LT Buy Disclosure: Held
