Its really worth checking out the Utah Oil and Gas Website. Marion are supposed to turn 8 wells into producers or have them plugged and abonded by 31/12/2010 The current activity on the old wells it would seem has more to do with saving the leases. Turning them back into producers is cheaper and faster than plugging and abondoning them, it will excite the share market, and Marion will keep the leases if it hurries up.
Looks like Marion has to plead to the minerals court to keep the leases given the work done over the last few months. They are still at risk of losing the lot. However given some work has started I suspect the department will allow a further extension.
There is still no permit to have ASD 3-16 converted to a water well. The water disposal approval has been given, but not the conversion of the well. I don't think this will take a long time, but it still hasn't happenned. So if water disposal into ASD 3-16 is not occurring, its expensive water trucking or minimal production.
I think we need to look at nearby Drunkards Wash for production guidance, and 250mcf per day per well is pretty typical. We could get lucky, but I don't think things will be much different.
MAE Price at posting:
3.3¢ Sentiment: Sell Disclosure: Not Held
