Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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After listening to vsa investor event again ( still can't believe Tony Blair works for them) it seems more like going back to the beginning. 154 old wells in field prior to lgo drilling, only about 70 were reactivated/worked over/re-perforated out of an original 90 targeted as beneficial. Also I note he wants the use of pumps running at maximum rather than beam pumps, we installed 58 new beam pumps in 2013, since the early days the infrastructure and facilities at goudron are vastly improved this may also help in his quest to raise production. Something that for what ever reason NR took his eye off. IMHO:-)
NR was going for longevity of wells,different tactics now and oil price has doubled in the last 15 months,but it's only steadied the last couple of months,timing is right
There were 75 wells that were cleaned out or reworked and they gave an average of 5 bopd , 12 of those wells were reperforated at the time and they gave 20 bopd on average . Now if 12 wells gave an average of 15 bopd more through reperforations then you can work out what reperforations will do to the rest. LK did say he has identified 15 different ways to up production at low cost and I am just putting out there one of a possible such way. I have seen stuff about the 15 C sand wells but only 14 were successfully drilled so its not that, it might be EOR as NR wanted 2 injector wells with 5 or 6 production wells and everything that I have ever read on EOR says the opposite as you get up (a little less) than you put down so 2 into 5 ? Not a clue how much water can be pumped down but even the sweep area is compromised with 2 injectors. Not to worry though as we have the EOR expert flying out today to spend a month there. Koots has inherited a massive amount of data and infrastructure on Gourdron and is taking a more business like approach instead of a politicians approach . We all know or should know that light api oil is oil that rises to the top of a greater deposit and that always played on my mind as to why it was there , @ 38api it is at the top of the deposit and it just never happened to be there as it had to come from somewhere . I am thinking that the ARK survey must surely pin point this reservoir and like any football team , a change of management can work wonders with a change of direction on the playing field. Chesh should resign and go for the Goggaburn bottlewashers FC tea ladies job. IMO.
I think he columbus is going to rediscover bonasse and we will see a simular upside that we saw at goudron in the beginning,don't forget the company has only just got sorted as far as the noose that was around our neck and I am so glad we are not drilling 45 bopd wells for half a million dollars
Thats where he has got the new name from,I like his style
A wee tweek here and there and if you get an extra 2 bopd from 75 wells and the 14 Csand wells then that's an additional 178bopd with little to no work. That's like drilling 4 new wells at a cost of $2 million so I believe LK when he says there are other low cost ways .
Wanderlust, bonasse hasn't a hope of replicating early goudron numbers. Afaik there were 10 or 12 wells on the lease, and of those only 4 were producing approx 10 bopd total before they were shut in recently. Eor or new drilling g required for any significant uplift there. As for icacos, there is no easy money there. Touchstone had a list of approx 200 targets to drill on their leases. Icacos was at the bottom. Not worth it at this oil price
JP,have to wait and see,but goudron was only doing 30bopd And bruv,I ran a diesel on soya bean oil for 4 years when diesel was 1.45 and veg oil was .50 so how do you know what you can run a diesel on,after all they were designed to run on peanut oil
Yes Vmax I agree,the biggest diference now is the guy will hopefully be on site,or at least on the island
Yeah the diesel engine part goes past most folks as I think from refining oil that you get 30 gallons of petrol and 1 gallon of diesel per an allotted amount . Its a bit more important than you might think but hey we are not oil men. I know that no one uses diesel these days apart from ships and trucks and all the heavy stuff and a shed load of cars and that 38 api is required to dilute the heavier oils and is therefore the most sought after oil. To say that you can run it in a diesel engine straight from the ground is an awesome statement and should be appreciated as an investor rather than a negative from people that probably should not invest in an oil company if they don't know what that oil is IMO
Joe ... agree with what you say. I also think expectations of what can be achieved with a few tweaks at Goudron are likely to leave some people disappointed. I don't think there is a magic bullet that will provide a massive uplift in production and that's what is needed if free cash flow to fund organic growth is the way forward. I still expect some form of dilution to provide the funds necessary to get the ball rolling in the right direction. It's early days for the new regime so we need to give them time to formulate a working plan of action. I don't see a quick fix in the short term so expectations will have to be realistic.
The Bonasse Oilfield discovered in 1911 by the Greig-1 well lies some 10 kilometres from Icacos and has been producing from up to 16 wells at depths up to 1,200 feet. Production was restarted in 1997, but has been temporarily suspended since mid-2016. Oil production comes from sandstones of the Cruse Formation and the oil quality averages 23 degree API gravity. BOLT and LTL are in agreement that significantly greater potential exists for additional production through the application of proven technologies. Additional shallow drilling targets are also available within the field boundaries....
It does look like Columbus Energy is as said , asset rich but cash restrained , and does look like there is many ways to up production at a much lower cost than drilling of new wells. I like this new approach and TBH , NR was a geologist and not an oil man, we may yet benefit from his experience as a geologist as that can now be transferred to the oil man. LK just would not have taken on this project without DD and a without having confidence on the outcome, he just did not have too ! Things will get tasty here soon IMO.
Agree. Robust core assets. All the information/data has been gathered, time to put it to use. Back to basics.
The high api will be beneficial when waterflood takes place,a lighter oil should move easier with out the need for steam or additives,just plain old water
Oil properties are important to technical and economic success of a waterflood. The key oil properties are viscosity and density at reservoir conditions. In a porous medium, the mobility of a fluid is defined as its endpoint relative permeability divided by its viscosity; hence, a fluid with a low viscosity (≤ 1 cp) has a high mobility unless its relative permeability is very low. Similarly, a low-API crude oil (≤ 20°API) has a high viscosity and a very low mobility unless it is heated to high temperatures. Because water’s viscosity at reservoir temperatures generally is much lower than or, at best, equal to that of the reservoir oil, the water-/oil-viscosity ratio is generally much greater than 1:1. The water-/oil-mobility ratio is a key parameter in determining the efficiency of the water/oil displacement process, with the recovery efficiency increasing as the water-/oil-mobility ratio decreases.
Various EOR techniques include; Gas, polymer, alcohol, thermal Injection etc. But this article focuses on gas injection only which is among the predominant enhanced oil recovery techniques around the world. Due to high economic cost of gas injection only , a more economical solution was developed which involves injection of gas and water alternatively commonly referred to as water alternating gas (WAG) flooding.WAG process entails injecting a slug of gas in to the reservoir followed by water which serves as the "chasing fluid". This cycle is repeated as determined by the operator. The process basically involves two steps; The gas is injected first which reacts with the oil thereby swelling the oil hence reduces the viscosity of the oil consequently making the oil more mobile and easier to flow. The interfacial energy between gas and oil system is lower to water and oil system and this enables the oil to be displaced by the gas which would not have been accessible by water alone. https://www.linkedin.com/pulse/water-alternating-gas-wag-injection-enhanced-oil-ibrahim-muhammad
WAG sounds sexy :-) lol
Introduction Oil recovery from mature waterfloods can be enhanced by combined injection of water and gas in an alternating (WAG) or simultaneous (SWAG) scheme. However, less experience has been gained on SWAG compared to WAG and hence the process is less known. SWAG appears to provide better control of gas mobility than WAG, resulting in improved sweep efficiency in addition to more steady gas production and GOR response. In some oil reservoirs (especially offshore) a relatively small amount of produced gas and/or a rapidly falling gas rate makes it uneconomical to develop a gas export solution. It is also not economically viable to supply gas to these reservoirs for a continuous gas injection scenario e.g. remoteness from source of gas. Re-injection of the produced associated gas together with water to provide reservoir pressure support, better sweep and hence increased recovery, appears to be the best overall solution. In these cases, SWAG offers a solution whereby a changing mixture of injection fluids could be used and a total void replacement could be achieved by combining produced gas and water supplemented by sea water to the required injection volume. From environmental point of view, in cases where export of gas is not economical, re-injection of the produced gas in a SWAG scheme can significantly reduce or in certain cases eliminate the need for flaring. SWAG injection can cut both capital and operating costs and improve gas handling and oil recovery. It can also eliminate the need for separate water and gas injection lines to the injection wells. https://www.onepetro.org/conference-paper/SPE-94073-MS
Research and data gathered over last few years just waiting to be put into practice.....http://www.searchanddiscovery.com/documents/2014/30354ritson/ndx_ritson.pdf loads of information on sw peninsula been gathered.... http://www.thegstt.com/wp-content/uploads/2015/03/Surface-Geochemistry-Programme-in-SWP-Abstract.pdf
The field has been dormant for 25 years and has not been produced due to poor infrastructure. The field is in shallow water off the Caribbean twin-island nation’s southwest coast and is just 6 miles from Venezuela. It is thought to contain 43 million bbl of proved reserves. http://www.ogj.com/articles/2012/04/southwest-soldado-light-oil-gauged-offshore-trinidad.html
Hey Daza, You knew, Just waiting on Gilly! not be long...... All the best (good to have a gang back together!)
I could do with a few more players, on the bench obvs.... All the best (Gilly coming back in MrPlumper?)
map
The channel between Venezuela and Trinidad is called,Columbus Channel,so that's where he got the name from,not the drilling rig,new discovery in the channel?