RE: RE: ugly You are absolutely correct. The problem is that our mitsue horzi's are being compared to the other tight horzi's (whether oil or liquids rich gas) that the patch has been drilling for these past few years. All of Bay Street has been conned by these dogs.....because the difference between press release IP's and production 30, 60 and 180 days after they first went on is totally dismal. IP's of 1500 or even 2200 BOEPD quickly turn into 120 BOEPD or less.....and then everyone is left to wonder if it was worthwhile spending $5 to $8 million for the dog in the first place. The scam is further exacerbated by the false 6:1 gas/oil ratio. You know.....a pr of 2500 BOEPD is actually 12 million a day and 500 bopd liquids and/or oil......sadly this is only 1000 REAL bopd. So, Bay Street has been entirely burned by these falsehoods, as have guys like the Cowboy ( go back and read all his silly garbage that he posted about cardium horzi's or whatever on CVU.A last year. Also, for fun, check out his garbage about over production - and how mad ERCB would be -and how useless EE managment is.)
What's hard to get accross for EE is that our wide production swings are not the result of initial IP rates plunging off a cliff. Our rates go down - because we shut them in, and they can be turned on again at a later date. Our initial production decreases are because or regulation, not dramatic resevoir depletion ! Quarter by quarter -this leads to wide production swings.......but over time it shows as a steady production increase.
Lets face it, ain't no one in the biz that wouldn't want to drill our $3M oilwells that IP at 350 -700 barrels OIL per day, pay-out in a short period, and then are brought back onstream at an allowable of 100 barrels OIL per day plus.
Our revised engineering report appears favorable.