RE: What’s on the Brockham Menu?10 Jan 2019 12:36
Firstly patience is required from PIs. We live in an age where folk expect things immediately and constantly fed updates through phones, tablets, laptops, watches via social media. Yes Angus PR is rather sloppy and can certainly be improved. But, I would rather invest in a company that does things the right way and takes it time to get optimised flow rates than being having a sleek PR programme with no production. We aren’t going to get daily updates, so it’s best to know this otherwise you’re just setting yourself up for daily disappointment.
The expression “turn on the taps” is an oilfield expression for the well doesn’t need to be drilled first, not that it is that simple to start producing. There are several important steps before you see hydrocarbons at surface.
The well is opened up (from being shut in, valves are opened so there is now communication between the reservoir and the surface)
A build up period or clean up period of 48hrs for a standard well and I’m sure longer for the Brockham well. Why do you do this? So you don’t shock the reservoir and seal up your perforations and / or fractures. What you will produce first is fluid whilst drilling / completing the well which has seeped in to the formation. What goes in must come out ethos. Whilst you drill the well you keep a cumulative record of fluid loss into the reservoir because when it comes to producing from the same reservoir you have a rough estimate of how many barrels it will take to see hydrocarbons at surface.
The flow rate will be constantly monitored and the choke adjusted. This will go on for days, possibly weeks. It all depends on what the Angus guys observe the reservoir is telling them. As I say I feel much more confident with Chris Clay being in charge for well testing after reading his packed CV (there is a post of mine from several days ago going into more detail regarding Chris Clay titled Experienced Guy at Helm for testing Friday 09:01).
You do not produce 24/7 during any type of well test. You want to see how the reservoir responds to periods of flow and subsequent periods of the well being shut in. Rather like squeezing a ballon, does it return to its previous shape (reservoir pressure builds up again to before test) or does the balloon retain its new squeezed shape (reservoir pressure declined and cannot reinstate the balloons original form).
We may get a similar RNS to Balcombe where Angus notified the market that Hydrocarbons were at surface. But I don’t expect a detailed RNS until possibly the end of January. If it happens before then fantastic, but I much prefer Angus to be focussed on getting the best production results for its investors.
And what about tanker sightings / numbers? Again I’m not focussed on the numbers. What investors should be focused on is the optimised flow rates with no to very little decline rate from the start of the test to the end. That is the key number that investors should be looking for along with the pre
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