from memory when the D1 flow rates were originally reported they made special mention of well head pressure being high.
From a decline point of view, it's going great. The only remaining question I have at this point is (1) when decline would kick in and (2) just how fast it would actually decline once it begins. Obviously, the longer the wells produces without decline, the greater the recoverable reserves will be. But the area is known for its tight reservoir for a reason, and production has been known to fall off rapidly once decline kicks in. This is not a negative statement, but simply something to keep in mind. Thus far, the earlier wells have produced exceptionally well - which is part of the reasons behind my optimism for recoverable volumes greater than 250BCF.
Cypress has obviously learnt valuable lessons from Mesquite in how to frac these Wilcox reservoirs as they have performed exceptionally well on that front to date.
So by end of Sept, we should have GF3 online as well, with D4 ready for testing (as they are bypassing the testing of HDGU1 for now). After D4 is brought online, they will obviously flow test DAGU1 if it is successful. It is after the testing of DAGU1, I suspect, that they might return to HDGU1 given their close-ish proximity to each other (assuming DAGU1 Wilcox reservoir quality is ok that is).
It is for all these reasons, and the availability of new funds from the sale of another share, that I've been back in the market to get some more today - and at very attractive prices too! :o)
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STX Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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