I think that it's more a case of what the company isn't announcing about flow rates that is accounting for the massive sell volumes, this combined with quantum fund selling which had 20% of the company and a massive market correction has made it the perfect storm.
It appears as though the market has taken back some of the de-risking premium it was assigning to RFE after positive results at Tahara.
It will take RFE some time to refine and optimize the frac to suit the different Lithologies encountered over the play, once they do this, IP rates will become more averaged and start increasing.
------------------------------------------------------------ Eagle energy have refined there fracs and well bore design and are now reaping the rewards -
Well bore design optimization -
Originally targeting the top 100' of the Mississippian, this resulted in high water production and lower IP's then expected
Currently targeting the top 60' = better IP's and lower water production.
- Larger design combined with lower targeting resulted in higher water production and lower reserves.
------------------------------------------------------------ Current design -
- 1,600 bbls Water - 20,000# 30/50 Sand - 575 bbls 15% HCl - 100bpm - Average treating pressure 3500psi
- Better cleanup near wellbore - Natural permeability - Can re-stimulate to restore production. -1 re-complete to date: ~300 MBOe added reserves at a cost of ~$1.40/BOe
------------------------------------------------------------ Eagle energy's average peak 30 day production across all 32 wells is 658 BOE/day.
RFE Price at posting:
79.5¢ Sentiment: LT Buy Disclosure: Held
