"Delays were encountered waiting for initial completion services after the wells were drilled"
"Culane encountered delays completing this well, waiting on services that couldn't proceed because of road bans"
"Culane had endured external delays in gaining approval for the implementation of the Killam water flood of over a year resulting in declining oil production rates as reservoir pressure continued to drop"
Management says that the waterflood is working and the production at Killam has stabilized at 1050 bbls/day. If the flood is working production should start climbing and based on what I've read on similar pools, production could increase by 200-300 barrels. The polymer flood might be able to increase the production back to 2 000 barrels per day, but there are likely to be delays ahead, which of course are due to external factors.
Something positive:
Culane's Notukeu pool, Upper Shaunavon horizontal test well swabbed 99% oil at rates of approximately 280 barrels per day.
Swab test numbers don't really tell anything about the normalized production capacity of a well, but it looks like the well could have a similar production profile to a Lower Shaunavon well. If the profile is similar the 3 month ip could be in the range of 100-180 bbls per day and reserves per well 70-100 000 bbls.
Management provided no guidance what so ever for the rest of year.
6 comments:
what you think? could macondo disaster bring good buying opportunities available? BP,RIG (and other gom drillers) SP has declined four days now. Is it too risky bet before us goverment has said final judgement?
It's difficult to assess the industry wide impact of the accident at this point, but I would stay away from RIG and BP. Assuming that Transocean's employees have followed the rules and regulations most of the financial damages wil be suffered by BP. However RIG's reputation will take a big hit from this even in the investment community, regardless who's to blame.
If the SP of other drillers is impacted by this then I would take advantage of that.
Other gom drillers sp has declined almost as bp and rig has, i dont think disaster could cause any significant difficulties others than bp/rig. There will come a lot investigations and new regulations but ban or even pause of oil production is out of the question. I dont know when is right time to take advantage of declined stock prices, is it today or early next week but im prepared well. Price levels seems very appealing already!
bottom fishing completed.
What did you get?
exxi,atpg.i didnt find any better stocks to try to play this. Both have a lot debt so i thought their sp will drop most and it did, both companies still are very good and maybe good growth story ahead.
alternative choices was mmr,sgy.
there could be more pullback in next week but i just couldnt wait anylonger.
wow what a day and week for gom drillers.
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