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Great news and thanks to B.P.
From what I have heard there is still issues with original completion removal, I am not expecting any update until April. I mentioned a good while back about the initial 70 day statement. That was never going to be the case, I really can't understand why that was said tbh
..... "The removal of the 2005 completion is taking longer than anticipated due largely to the unexpectedly poor condition of the equipment being recovered from the well· As a result, R3 operations are now expected to continue into March 2021..."
March on Monday .... :-)
Gusher or no Gusher it would be lovely to hear some news on the state of things , first we were told on the 12 of October roughly 70 days ,then we were told no news before late January ,come on its now nearly March. !!!!!!
"New reservoir targets can provide more pressure/flow...." afaik, R3 has a pressure gauge installed !
Should have added that the 7,000 boepd, is for our current 60% share.
Stay safe
I'm hoping for a minimum of 7,000 boepd from R3, as Dexter says, there is a distinct possibility that the piping will be larger than the original and maybe even that they have taken it horizontal along the upper of the well in order to maximise production. It appears to be far enough away from R1 & R2 for there not to have been any leakage between them. They will have taken the opportunity to take every advantage of newer methods that have taken place since it's first drill, we do appear to have some very knowledgeable engineers on board and with the cost of this re-entry, it would have been silly not to. This may have cost us more than originally planned but when in production, it will lower our overall cost of production again. Don't forget that BP's costs were over $22/boepd, we dropped that to around $18 in quick style and then over time to around $12. These guys and gals are experts and with the extra production reducing that further, we must have one of the cheapest costs in the NS.
Keep safe
New reservoir targets can provide more pressure/flow, that's for sure. This is not a new target though, the production tubing will be larger than the original (same as R1 and R2 I presume). I cant actually remember what the initial flow rates were with BP, I cant even remember if it was even tested after running into complications. If memory serves me right I think it was just plugged and left. Maybe someone else here can remember.?
Yep, I do know that gusher is a term used for a new well, its a Tounge in cheek phrase!
I know its the same reservoir, and I'm certainly not a reservoir engineer, but speaking to toolpushers offshore they have indicated that it is a possibility to have more pressure with a new entry.
I've made the reasonable assumption that R3 should be circa the same flowrate as either R1 or R2 because as you say, it's all tapped off the same field - whether there's full blown communication between the regions they have installed each completions is another matter and something a reservoir engineer can worry about. I will say this, though - we recently undertook an infill drilling campaign and one of our wells hit 20,000 boepd - more than double the rate our previous highest well when we started up. hitting the sweet spot in the reservoir really makes a difference.
R3 comes out of the same reservoir as R1 and R2. This reservoir started its life around 11000psi and over production time is now down to around 6000psi. If R3 successfully comes online they will have a ball park figure for production/flow rates. Gusher would be a term used for a new exploration well, not something we already know
its not about rhum3 being a gusher and then all bets are off for an acquisition, the business needs to have multiple assets and not be reliant on a couple of assets. Need to diversify as well as manage risks by reducing asset downtime if they occur. Also these assets are getting older and its inevitable that depletion will occur.
Acquisitions are necessary and the cash needs to be invested appropriately.
Should R3 turn out to be in anyway successful, let alone a gusher, we will not be around long enough to see it reap rewards.
aimo
My thoughts on an acquisition..... I would give the bod more credit than most on this bb, what if R3 tests out at 15 to 20 thousand boed, why would you spend multiple millions on an acquisition when you have a gusher in your own back yard?
In otherwords, looks like common sense to wait and see what the results are from R3.
Then you can pay off kiosk kate and save more money.
OMHO.