Morning , EDG had similar problems with water disposal and constructed a disposal facility which might be the answer for MAGP if on going wells in that area have the same problem in EDG's case the treatment system investment allowed for lower well operating costs.... worth a look but as Smidsy re-iterated hydrocarbons are present and the well could be returned to at a later date......just a thought.
In short, that's a bad result; But, better quit early rather than continuing and pouring good money after bad as they say.
So as expected... "The Well encountered hydrocarbons in the targeted conventional zones, including the Lower Skinner, Redfork Sand and Mississippi Lime/Chat," - unfortunately there was also a lot of salt water.
----------------- Where to go from here? No doubt the BOD have a drilling hit list, the only question is will they just move on down the to the next on the list or are they determined to go after the self operated wells as they have a much lower extraction cost?
I think the first thing to do is full assess the results just in; £175k is small fry, but does this mean that this section of acreage is 'dead' can can they target something down the road?
'the decision has been made to plug rather than complete the Well to limit the total cost of operations to US$175,000, and allocate the remaining US$400,000 in the Shimanek budget for new drilling activity.'
No-where in the RNS does it say drill 'new' Wells. It only states new drilling activity. Am I looking at this through rose tinted glasses?
Mr. English posted the following on the 22nd July. And it makes sense. If the drill has passed through other plays all may not be lost. Anyone with any comment?
It is not how fast the stuff come out of the ground, but how much of it is actually down there. The great bit about drilling at this location is that there are multiple plays to target, so measure the thickness of each play as the drill goes through and initially pick which ever one looks best. If you find multiple good plays then 'bingo' you can always rework or re-drill (from the same pad) to the other plays later. The IPR is ONLY from the selected play, but if there are multiple pays the total reserves will much enhanced.
So, perhaps less meaningful to most people, but for MAGP (and indeed the value on which your holding here depends) is the total reserves (of the well) and hence the number on which the competition should be focused.
didn't someone post on here at the start of the drilling that the drill would probably pass through several layers of oil until it reached the planned depth and if problems were then encountered the drillers would backtrack until they reached one of the other layers of oil.
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