GREY:BOPFF - Post by User
Post by
Gaswellon Dec 04, 2012 8:46am
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Post# 20679041
Schaeffer on BOR
Schaeffer on BOR In their quarterly, Border announced some of the technical details of their first long horizontal into the Slave Point formation.
It was very positive news.
Porosity was 20-33% over 256 metres—that’s incredible. Really, 3-9% is good. So the well should have a high flow rate and faster payout than other Slave Point wells we have seen from Pinecrest for example.
Management has decided to take a step back and review 17 km2 of new 3D seismic data right over and around the well bore. (This story is taking a very long time to develop! Approvals from Indian Affairs, drilling problems etc and waiting for 30 days to get a longer term IP rate = 2-3 meaningful press releases a year.)
Obviously this is the right thing to do because that 20-33% porosity is a MAJOR SWEET SPOT that they’ll want to develop—and hopefully the 3D seismic guides them to their next 2-4 well locations where that sweet spot exists.
Management was quick to point out this is not reefal—a reef often has better porosity but limited size compared to a resource play. But the rock appears to have dolomotized here under pressure, and dolomites are very porous (think limestone).
Management said they would open up the horizontal leg, put some acid downhole to clean up the area right around the wellbore. They said they may not even have to frack the parts that are so porous.
They’re hoping to have 1-2 more wells drilled before spring breakup. New seismic being shot now (above and beyond the 17 km already done) will help pinpoint the 3rd and 4th horizontal wells into Slave Point later in the play.
This is all wonderful news (they also have $16 million and don’t need to finance now) but I’m not a buyer of the stock at this time. I want to see how the market reacts to flow rates—which should be really good.
Border management has said they are aiming to have a well profile on their property that’s very near to the numbers that Pinecrest has in their Type II well—but this first well will almost certainly be closer to better than the PRY Type III well. Remember though the market is not expecting this high porosity to be consistent over their entire property.