RE: GOOD NEWS FINALLY!!20 Sep 2023 12:09
Ezhik, as Argyle says. The Dominion pipeline is a major pipe. I have put links up before as to where gas and liquid pipelines run. One ran from Moab in the south directly to the greentown gas facility. Dominion, I assume, have recommissioned this southern pipeline and also built a pipeline north to Green River.
Now, Zephyr have gathering pipelines on their acreage (we do not know current operational status of these as we’ve never been told). State 16 however does not have a gathering pipeline in close proximity so they need to tie that in. The gathering lines all go to the processing plant. Again we don’t know how much equipment is operational here. What needs doing or what needs commissioning. Only then will they be able to sell dry gas into the pipeline network.
I have asked about water and pipelines before both at presentations and via email and had blank responses. So no idea what they plan. It will be needed and trucking is not the cheapest. They do have some disposal wells courtesy of their acreage purchase.
I would stick state 16 as a producer on the back burner. It was only a short lateral and they have the salt issues to overcome but this will happen once they have their internal pipeline/ facility/ more testing. It will be a producer but not ‘near term’. They also plan to explore the overlying layers from this which is something I said many many months ago and was confirmed when they applied for further drilling permits here for the state 16-3.
I think the plan will be as follows: Test (eventually) 36-2. Once rates known spec and start construction/ recommissioning of gas facility. Parallel to this drill state 16-3. Hope that pipeline permit approved and fit this in to tie state 16 to acreage network. Once all this complete can produce from state 36. Test from state 16, both 2 & 3. And also depending on further infrastructure commissioning also produce from federal 28.
I’m not sure how all the timelines will work exactly but can see everything overlapping in a semi parallel way ONCE state 36-2 is tested.
Side note. JD you can guarantee the words ‘near term’ and ‘responsible stewards’ will appear in the half year report!
Sign In
Follow the stocks
