RE: Flow rate19 Jun 2018 18:05
CT hope below helps, lots on wiki88
"Questioner:
At what point does one decide it was below average and not good enough? Then, with the immediate 6 to 12 months, after that, what sort of things would you be looking at doing?
Dave Wall:
Let's go through a couple of scenarios which I think will help clarify how that will play out if it does get to that. Say we got 75 barrels a day which is okay, not great. If we could understand that the reason why we got 75 barrels a day is because 60% of the stimulated interval had just not worked because there'd been a blockage or something had gone wrong, then, we go, "Okay. Well, if we could frack 100%, then that 75 barrels in that context looks pretty good." The market would be going, "Hmm, I don't know. You guys, we don't trust you so much anymore because you didn't execute properly." That's why things sometimes go wrong.
We would have to drill another well to prove to the market and execute the job again effectively. We probably wouldn't have the information that we needed to drill a horizontal because 60% of the fracture didn't work with stimulation. That would push the timeframe out. We had permanent sites that we can drill additional wells from the pad, so we could fast track that. Obviously, there'd be some dilution associated with that, and possibly at lower prices depending on the market's reaction. That's one scenario.
It's really about understanding why it didn't work. If we effectively fractured 100% of it and it still flowed at 75, that would probably be the end of that for the time being because you probably need much higher oil prices to justify spending more money on something that we think has questionable economic value given what we know about the above ground cost, structures, and everything else on the slope.
London Feb 20187
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