Great news that things are progressing, would have been nice for them to include what they are doing differently this time round. One hopes that armed with all the information from 36-2 they can control this one successfully.
Say what you like, the oil cut is alarming and it doesn't sound like the well clean up will make a massive difference. Can't see it being 75% oil - 25% water for example.
The oil cut should be the bit that alarms people and why they say they think it can be improved.. 50 bopd of oil when the oil cut is 4%m would mean producing 1250 bopd of fluid of which 4% is oil.
Why would the shorts close? The company is on it's knees and with the strong prospect, introduced today, of a debt for equity swap coming. Therefore, my take is it is very likely.