RE:RE:RE:RE:RE:RE:RE:Stage System failure, not goodI have no doubt that Stage will help with the cost of rework on the wells, but to expect them to cover production losses, and refracking costs is unrealistic. It was a gamble to use unproven tech, and we lost, not a lot, but there is going to be a cost involved.
The fundamentals of BBI are still sound. The land package is very promising in my opinion, the damage to the wells is not irreversable. This is a setback, that's all.
Investing is always a risk vs.reward situation and I applaud Garth for letting us know in the way he did. Some will say too late, but to put wells in production, analyze the production, set an investigation process in place to confirm suspicions all takes time. I'm sure that Garths vacation was a working one or we would still be waiting. Now we have to allow the time to correct the problem.
On a positive note, this disclosure should actually help Stage to succeed in marketing their product as they have not relied on a retail client to find out the shortfalls in their system which they have already corrected with the Gen 4 Collets. Also they have proven the operational limits, (They stated that at lower pumping rates they noted less erosion and metal fatigue).
On another positive note is the other co-op wells that are being drilled in relation to Blackbird lands.
This will certainly shake things up for the short term, but as they say, Sharks strike when there is blood in the water. Today, we are going to bleed a little.
Time to accumulate!!!
Good luck to all!!