Just to explain to others about water drive in case they have been confused by some misinformed comments.
Some oil wells are such that the oil is pushed to surface by water within the reservoir. The oil and water separate and the oil is able to be sold as normal. The water is dispersed. However, this particular reservoir that J50 has intercepted is not a direct water driven reservoir. That is, the oil from J50 is driven to surface by pressure which, in part, comes from the water table far BENEATH the rock basement. So the "fluids" that come to surface are all oil once the well has cleaned up from the drilling process. The J50 reservoir has a rock ceiling with various layers of different rock types above the ceiling including sandstone and limestone (basically calcium carbonate: CaCO3), and the mobile oil is "trapped" between the ceiling and the rock floor. What's it trapped in? Limestone. That's why it's not a big flowing well. Limestone is not very porous like sandstone but acid does break down limestone over time, so these rates of 435 bopd should improve. We've seen a good increase in flow in just seven weeks. Limestone breakdown doesn't happen completely in a few weeks. So, imagine as the limestone is broken down by the acid over time, the path to the wellbore for the oil to flow is made easier. Hope that explains in laymans terms a bit about J50's reservoir geology.
JPR Price at posting:
3.4¢ Sentiment: Buy Disclosure: Held
