DXI 1.04% $2.85 dexus industria reit.

horizontal is the real deal, page-31

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    i think this particular post is the type of quality post that we dont see too much of, its worth a read IMHO



    quattro44 - 10 Oct'07 - 23:51 - 59410 of 59430


    The key here is that they are trying to ascertain the potential of each zone. They would not necessarily put zone 3 on long term test. If they had a good zone they would flow for a while to gather some information and then move to test the other zones.

    If zone 3 was a dud, they would set a cement plug across the perfs to permanently seal it.
    If the zone was good, they could either set a cement plug across the perfs or set a bridge plug above it to seal them off or both.
    They would then move up to zone 2, perforate, frac and test that zone.
    Then repeat same with zone 1.

    If one has set a cement plug across a zone and a packer above it then it is easy to drill both out to re-enter that zone. Once you have drilled the cement out you just re-perforate again.

    Hence you can always re-enter any zone.

    You can also cut a window in the casing and drill horizontal wells into each zone seperately.

    You can also complete and produce from multiple horizontal zones in the same well.


    I take great pleasure in explaining operational aspects of the oil patch to investors who are not familiar with such things. It is in an attempt to prevent the sort of comment above that suggests that because one zone in an entire portfolio of drilling prospects that was not really expected to produce much is plugged and abandoned, that there will be a massive drop in sp. Because investors do not understand these things and react accordingly, then the mm's part them from their money easily.

    EME is capitalized at less than £20m! With all this? I am pretty comfortable with my investment.

    I could of course be wrong. You pays your money etc.
    IMHO DYOR
    q44


 
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