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@Nordell - you asked a few minutes ago "why has there been no testing? no one has come up with a plausible reason"
I posted this 3 days ago in response to an identical question. Could you please explain why you find this implausible?
"They were aware that MOU-1 was high risk for conventional explosive perforation - it has the big advantages of unconsolidated sand reservoirs with resultant high porosity & permeability, plus overpressured gas. Unfortunately this brings with it the need to use higher density drilling mud which in turn increases the likelihood of easier penetration of the mud into the loose reservoir, giving rise to formation damage. The decision was taken to delay testing until all wells drilled were ready, partly in order to save money and partly to give time to reassess the perforation needs.
Management then decided upon Sandjet perforation, and the gear & team were booked. The planned programme had to be abandoned since another Morocco operator held on to the wireline logging equipment that is necessary for accurate positioning of the Sandjet equipment - the delay would have taken PRD to beyond the end of their then-current licence extension period.
Everything was rebooked on the assumption that new approvals would be received mid-April. On the 1st May we were informed that the requisite licence extension had indeed been granted, and that preparation for flow testing was under way. Shareholders do not have any indication at the moment as to whether there are further delays, everything is on schedule, or whether testing has already started. You can either decide this is poor communications, or alternatively that it is sensible strategy to play cards close to one's chest."
Hammer. Nail. Head.
Excellent precis
Thanks keithoz
Nordell? What's your view? Genuinely interested....
@KeithOz, don't forget that not long after drilling MOU-1 COVID hit and Morocco went into lockdown which caused significant delays to both testing and drilling other wells.
They have attempted testing it failed.
Keithoz provides one reason covering around 2 months why testing did not take place due to management's failure to check the terms of the contract. Better due diligence would have highlighted the possibility of the other operator retaining the wireline logging equipment and measures could have been taken to address this.
The main reason testing has not occurred in the 12 months since they stated they would do it, is the continued use of extensions to the initial period and the necessity for reissuing of exploration permits. This results in the tight windows of one or two months of permitted activity followed by two to three months of waiting on the next window. With the benefit of hindsight it would have been better to enter the first extension period after the completion of MOU 4 last year, use the placing to pay the fee/ bond for the first extension period and use the 27 months of available permitted time to test. This would have provided more flexibility to find a suitable window for all the equipment.
PRD are back in the position with 19 days remaining on the latest permit and another tight window to start testing and drilling of MOU 5 before another two to three months of bureaucratic downtime hits.
Dear Keith,
What you say does not quite compute, Were all our drilled wells not comprehensively logged after drilling ? i believe they were, ….As such why do we need new wireline to advise the positioning of sandjet when the logging already done will comprehensively have determined where the intervals are and the depth of them that we need to operate the SJ on. SJ will be run on coiled tubing keith not wireline .. I am sure you are aware that the abrasive propant used to perforate needs a conduit to be pumped through, either via a drill / work string rig based, or in our case via coiled tubing . Coiled tubing can easily be calibrated to hit the damaged intervals the SJ needs to be used to try and perforate into the reservoir. IMO I believe you invent the narrative as you go long to try and influence those that have no industry experience. …. .
And also Paul explained that it took time to understand mou1 as nobody had found sand like that before.
He also added that it worked out well that they hadn’t tested as new info had been understood.
Kieth you’re a patient and honourable man 👍🏼
The Bold, good post. Where is the Sand Jet kit? I reckon it is back in Europe but just a guess. It is also quite possible that MOU-5 will be drilled next year. Most targets have slipped horribly, yes MENA can be difficult but effective management is more important.