RE: prospects16 Jun 2020 08:47
15/4/2020
(A quarterly production update detailed an increase in the water cut to 17% from 10%, with some 6,000 barrels of water per day flowing in the period (predominantly from the 205/21a-7Z well).
It occurred as overall production volumes were increased to 20,000 bopd - 2,000 bopd from the 205/21a-6 well and 8,000 bopd from 205/21a-7Z.)
Though now the water cut issue in the latest rns..is down to 12% and more technical testing is underway and we all waiting for further news which will throw more lights on the current situation and the two wells instability that occured.
Hurricane FPSO’s able to manage the water issue within 17% .This has been declared.
Closing the main culprit well is tge right move but more importantly now is the stability of the this issue and what will happen when they continue to increase the production..
It is more technical than anything else. Hurricane has rich assets to explore still so in the worse scenario..the alternative is there but they need to finance it too hopefully from the current plans of increasing oil production with no water concerns or rectify the instability between the well 6 and 7.
The market is looking at the worse scenario and then we had a sudden departure of the ceo who is well respected geologist . All this led to the collapse of the SP . We shareholders see it as an opportunity to invest now but the market is in a wait and see mode...
Oil price will have impact but more importantly is the coming news from hurricane to reassure the market on the progress...
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