Waterflood It seems to be working. First well is responding.......It is a slow process which is good because if it was fast to build pressure the reservoir engineers might be concerned that it was smaller than thought. Slow is good. Production is going up overall as we approach year end and I think they should be cash flowing $6 plus million per quarter. If they can get a couple more good wells plus the waterflood then by year end we should have a story again and they will have learned their lesson. Hopefully they will have more targets from their 3D. At this level only disgruntled shareholders are throwing in the towel without any regard for valuation. Should be
.40 annualized by year end (maybe more) with production able to fund drilling given the high netbacks. This is my take for now.
Am I out to lunch on this or does this make any sense?