It is understood the wells are not fraced.
At this time the tubing and casing pressure is being manipulated and fine tuned as more production infrastructure comes online.
10A-15 has been in production for 330 hours, as was the case with during its initial 90 day test period, equating to 13.75 production days. The government IP of 82 bpd is based on a time window of 330 hours (13.75 days) of production within the reporting period July 1-September 30, 2011. That information was provided to the Government by POP’s independent engineers. They reported a total of 1130 bbl of oil in 13.75 production days = 82 bopd, and the government publishes that information. The method of calculating the bpd is clearly set out in the Corporate Presentation together with the 90 day initial production figure.
The average of 40 bopd in the November 14 news release was calculated by the same independent engineers from all of the production data over a three and a half month period between July 25, 2011 and November 10, 2011, which was the most recent date for which information was available for POP’s November 14 news release. The production reported by the engineers for November 9, just prior to the Nov. 14 news release, was 12 m3 over 24 hours of continuous production. You multiply that figure by 6.289 and you get 75 bopd, as reported in the news release.
Petro One had reported solid production by the engineers through October and November. Average production of 47 bopd in October with production as high as 71.7 bopd, and production as high as 88.1 bopd in November. The engineers reported 459 bbls over 136 hours of production (5.67 days) during the first ten days of November, for an average of 80.59 bopd.
However, it was proper to report an average of 40 bopd for the entire period July 25 – Nov. 10, 2011 because production fluctuates. That is considered normal for Viking wells. The production numbers will virtually always be different because there are fluctuations in the reservoir itself – pressure and flow of oil, gas and water - and external factors such as weather and mechanical that we experienced in December and January.
There is a lot that goes into a successful oil or gas well that the average person does not see. That is why a pumpjack was installed on 10A-15 in December. Pumpjacks are designed to maintain consistent production by controlling reservoir fluctuations. Petro One has been working on this since December 2011, and it is likely that they have now achieved stability and applied the lessons learned on 10A-15 to the other five wells. All of which are running smoothly. However, these wells are still in the test period and the company won’t have consistent production numbers for at least another 90 days. That is why recent news references the early summer as a target date. That is 90 days away.
The bottom line is that Petro One now has six of six wells producing oil, and the company is now looking at a possible gas tie-in. Bottom line is that this is good success for the company’s first well.
James Hudson, AlphaFlight Portfolios Inc.