UKOG Post4 Oct 2018 13:58
Posted on UKOG by GeoDave
Hello All,
I have posted here in the past to offer some technical insight as a practicing chartered geologist in the UK. The geological arguments have been gone over in fine detail here over many months but I do certainly agree with DLs interview comment in that there is a great misconception regarding flow testing and the formulation of an EWT.
In short, there is no set specification for an EWT. Such tests are entirely site-specific based on a technical interpretation of the geology, the geotechnical properties of the strata, the reservoir dynamics and the well construction. EWTs are highly experimental and it is common practice to halt the test multiple times to review test data and to use this information to adapt and modify subsequent stages of the EWT.
An EWT is absolutely NOT a linear or binary process but a highly organic process of data collection, iteration, interpretation and adjustment and is best thought of as a series of multiple sub-tests. There will be variations in pumping rate, periods of pump/flare activity/inactivity. Any attempt to deduce the flow rate from the testing by looking at pump stroke rate over time is going to be fraught with error and the longer the EWT the more significant the error.
Personally I find it more useful to look at other factors to assess progress. UKOG have systematically and recently pursued a policy of acquisition of interest within HHDL which now stands at some 72%, up 22% in the last few months. Portland commercial is realistically a given now and has been massively de-risked with an official declaration likely to be published soon. The Kimmeridge Fm testing has only just started but available information to date indicates a viable play.
In my view UKOG are quietly positioning themselves to be top of the podium for when this really kicks off shortly. SS is highly experienced and knows the importance of getting your ducks in a row BEFORE you need them to be.
I have taken advantage of this quiet period and depressed SP to add significantly and an very confident we will see a rise in the SP soon. Don't be fooled by the typical impatience on AIM - it creates some great oppourtinites.
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