kik pretty close to 12m lows, of 10.5,I managed a call to both...

kik pretty close to 12m lows, of 10.5,

I managed a call to both stocks last week to get a handle on this formation water, water that is trapped in the source rocks millions of years ago.

As to the water cut, was interesting to learn that the first three days of production had zero water, and then we have elevated levels, resulting in the overal 5/56, so i'd guess that maybe its more like 5/15 of the later.

They said, sometimes you get formation water, sometimes you dont. And we just have to wait and see what the final cut is, but they didnt seem too worried, and also said that the production rates were still as good as they get, over the 18000 bopd.

So, if its still flowing at a rate of knots, albiet turned down, i think we need to start thinking that we may have higher water cut than the 10%.

It just all depends, on whether the elvated levels remain, or they soften.

But lets say 30% on 18000 bofd, would still leave a production level of 12000 bopd.

I gained the understanding that they werent expecting water, but its one of those, be prepared just in case, and in this case, the equipement had a broken part, that has had to be replaced.

At the end of the day, when its deemed a commercial operation, and the production picture is clear, the stock should return to prev highs, and onward.