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Not convinced "we'll know for sure next week".
We won't be hearing from CEG for the rest of this week following their one RNS a week pattern (apart from that welcoming BOD bonus drop last Friday evening).
Next week we will be given an RNS but I think it's just a general FYI we are still in the production testing stage - everything is going as planned and we will keep you posted.
Meaning it will likely be around second / third week of August that we will get anything meaningful on S2.
Another piece of news shortly after that which will likely jolt the SP one way or another is the annual report which they have delayed to 30 September 2021 because of Covid - will be interesting to analyse CEG's financials.
Deltalo, didn't you say the below last week and the week before.
"We will know for sure next week."
Delato - still looking forward to checking in with you on SP at the end of the week.
Personally, I don't have high expectations for S2. The LC is the great unknown but the sentence ...
"Thereafter, the other 200ft of net pay identified in the Upper and Middle Cruse zones will be perforated and tested, to give a full assessment of the well's production potential. "
... doesn't inspire confidence in LC being a game changer.
If S2 becomes a producer from MC like it's twin sister, we must remember that S1 produces 90-95% water.
"Major" production equipment.
Keep the faith.
GLA
Looking very likely that the importance of correctly preparing the lower cruse reservoir for a good production rate will open this up for a full field development, we'll know for sure next week.
I'm puzzled by the testing programme. They've perforated all of the Lower Cruse potential pay: the 70ft assess as oil bearing and the 60ft that was unclear. Why wouldn't you first (or only) test just the best parts. If there's a risk some it is water bearing, why risk giving the water a route to dominate the oil flow.
And if the LC worked, my expectation was that the MC and UC would never get tested in this well. Why perforate those zones and mix the heavy oil with the LC light oil? I was in fact thinking that to test those zones would mean plugging off the LC after its test so really this can be completed as a LC producer or a MC producer but not both. Perhaps someone technical has some thoughts on that.
Of course I take the negative slant, but it seems to me they are getting the obligatory LC test out of the way as quick as possible - not a sign of confidence.
lol no John, but both wells are looking good thus far imo, just what AIM O&G needs right now in fact, so fingers crossed for both.
Did you mean to post that on BLOE, cperkin?
IMO that RNS didn't really say anything that we didn't know. The company are trying to keep updated even if there is nothing sexy to report. I know many people have lost lots of money but it's not as negative as you think, it's just not as happy clappy as SC makes out. Nothing to see here.
It's a positive RNS with all going according to plan. The log results alone look very positive and it seems highly likely at this stage that CEG have a production well on their hands. The proof is of course in the the final flow rates to come shortly, but how anyone can say it is negative for an oil company is absolutely beyond me.
I am at this stage very much looking forward to the next update.
Have a great day!
Lol. It’s ridiculous, right? How anyone could read that RNS, after the P1 debacle, and be filled with anything but dread is beyond me.
Yeah Johnbriggs how dare you even attempt to differ in opinion to the great sc who has magically predicted the opposite of what would actually happen for the last god knows how long!
This board is for dreamers only and ifs and buts negativity on a share that’s 90 plus percent down and dropping is not aloud how dare us lol
Johnbriggs: your post is daft. If we hadn't had an update today, you'd use that as an excuse to post negativity. Why do you want the SP to go lower? Are you shorting?
Starchild
SC, please. This is a downbeat RNS that doesn’t exactly leave investors with confidence. I can’t see the SP opening up at east 20% down on that.
I found this sentence positive, in the sense CEG are doing a FULL testing job....' the drilling rig has been fully demobilised, to be replaced at site by a Challenger Energy workover rig along with production tanks and major production equipment'. It does not necessarily mean there have been problems. Especially as the rig use was planned and pre-approved by the authorities when the project plan was issued several months ago.
To save opex, not all companies bother to use a workover rig (which is an expensive capital asset per day, whether owned by the company or not ). See https://www.testwells.com/test-not-test-exploration-appraisal/
It is good CEG is going the whole hog, as S2 can, to a degree, help to de-risk S3-S9
GLA
Starchild
RNS: over one third perforated from lower levels and being tested. In parallel, remaining +/- 200 feet being perforated then tested. We may get another update +/- monday, and/ or the full results during course of next week.
GLA
Starchild
Challenger Energy (AIM: CEG), the Caribbean and Atlantic margin focused oil and gas company, with production, appraisal, development and exploration assets across the region, provides the following update in relation to production testing of the Saffron-2 appraisal well.
As previously advised, the Saffron-2 appraisal well (Challenger Energy 100% operating interest) was successfully drilled to a depth of 4,567ft encountering similar Upper, Middle and Lower Cruse reservoirs to those encountered by the Saffron-1 exploration well. Since the last announcement of 14 July 2021, the drilling rig has been fully demobilised, to be replaced at site by a Challenger Energy workover rig along with production tanks and major production equipment. Following inspection and subsequent formal approval of both the well completion and production facilities by the Ministry of Energy and Energy Industries (MEEI), approximately 130ft of potential reservoir sands in the Lower Cruse sections of the well was perforated, to enable production testing from these zones to commence.
Currently drilling materials and fluids are being recovered from the well, which is expected to continue for several days. Once the well has been fully "cleaned-up", pressures, oil and fluid types, and production rates from the Lower Cruse zones of the well can be ascertained - an important part of the process as this reservoir has not previously been tested/ produced. Thereafter, the other 200ft of net pay identified in the Upper and Middle Cruse zones will be perforated and tested, to give a full assessment of the well's production potential. Further announcements will be made as appropriate.
Eytan Uliel, Chief Executive Officer, commented:
"The objective of the Safffron-2 well is to understand the production potential from the various reservoir units identified by both the Saffron-1 and Saffron-2 wells, starting with the Lower Cruse intervals. I am pleased to advise the first stage of production testing at the Saffron-2 well has commenced, with well bore clean-up operations underway. We will provide a further update once we have an indication of production potential."
Just checking ;)