Strange situation27 Sep 2024 14:04
As you all know normally when a company drill a well there are two outcomes ... one is that it is a duster and the other is that it could be economical and tests are ran.
Here we have it that the drilling went well but there was an issue with the shale and that stops full data being retrieved. A new rig has been brought in to fix the shale issue and maybe dig deeper, just 100ft extra, to prove flathead.
On 3rd September interview said "We have found a great well ... just a minor setback in the shallow section of the wellbore called Mowry shale, which is proving problematic a bit. So we need to go back in and case this off before we test the well" and then called it "completely unexpected but nothing insurmountable thus far. We believe we can get this under control in short order"
But on the presentation they mentioned it as a risk which I had not thought of it as that up to the point as I believed it was a simple fix. It may be exactly that but it came through the presentation that it may be more of a concern and others picked up on that.
At the same time they gave us more data than I have ever seen given on a well that hasn't even been tested yet to show that if the shale can be sorted the well is very commercial and might be a nice headline from it.
I was thinking about the issue but they also drilled there 80 years ago and managed to have a producing well from it and you would hope technology has move on quite a bit in those 80 years. Also they are using Precision Drilling and you can go on their website and see they have a good track record on maintenance and repair on wells that I don't feel Treasure State drilling may not have.
So what are peoples thoughts ? is this a quick and easy fix or could it lead to more issues ? Once this is sorted we know the picture is very rosy and that seems to have a very low base of investors at the moment that a headline RNS would expand upon.
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