regional flow rates...

From the company (my comments in black text)...

Historical Oil Production in the Region.

"The old “American Oil Well” was the first recorded oil well in North America. On 29 March 1829 the gusher spouted upwards of 50 feet (15 metres) flooding down the Redox Creek...(actually it was the Renox Creek) ...where it flowed into the Cumberland River. (the poor driller was actually drilling for salt (brine) and ran of in fear when he hit oil as he thought he had drilled into hell!) Oil continued to gush for three weeks or longer with an estimated flow of 50,000 barrels. It is reported that the well continued to flow unused for many years, as there was no use for oil at that time.

The Crocus Creek discovery in 1865 some 5 miles (8km) north east of Burkesville and some 5miles (8km) north of the Carter Lease produced 3000 barrels per day. Graves Gusher at Salt Lick Bend in 1902 produced 5000 barrels per day, Irish Bottom and Dutch Creek gushers were all brought in during this period, all approximately 5 miles (8km) north of the Carter Leases.

Interest in the area abated during the period of the big discoveries in other areas outside the state. Enthusiasm was rekindled in the 1960s with a discovery at Goose Creek some 1.5 miles (2 km) north of the Carter leases. Since this time many wells have been drilled in the area with varying production rates. Some wells
have produced up to 1000 barrels per day and some as little as one or two barrels per day. Oil and gas is ubiquitous throughout the area and at varying depths. Many of the early wells were very shallow often to only two or three hundred feet (less than 100m). Some wells have been drilled to 1500 feet (approx 500m) with many producing oil at commercial rates."

So, whilst many wells in this area produce only some 5-20bbls per day, there are clearly high pressure exceptions...and potentially more at depth?

WGP had previously targeted a total production of some 65bbls/day from their existing and newly worked-over wells on these permits.

It appears they may well have doubled this targeted production with this single well however...and could potentially increase this even further with success in the next two on the permit, or indeed with higher than expected flow rates on their first well?

The key I think might be the introduction of new techniques to the lease, which is currently producing from some wells over 40 years old...where it has been proven their drilling techniques often damaged the producing formations, or indeed production methods themselves resulted in severely limited off-take potential.

Government reports state that a 66% of recoverable oil has been left behind by the old-timers!

Of course, the fact most wells in the area have only been drilled to 150m means there could well be many deeper hits such as that encountered by WGP recently.

In the wash-up however, I doubt we are looking at a significantly large accumulation, nor indeed sustainably high flow rates...but given costs of just $30k to drill each well, they could litterally pepper the area (with change)...just from a few days production of the most recent well.

And who knows...if it is dettermined that flow rates of 50-100bbls/day are in fact acheivable...if not more...they may well have stumbled onto a decent bit of luck!

Lets not forget their CBM and other assets...lol...Kentucky was virtually valued at zero just a few days ago.

Cheers!