Three (3.0 net) Horizontal Belly River Dry-Hole-Dusters Q3!?We have been waiting a few months for results from the 3.0 (3.0 net) Thorsby Belly River results. Striker must be just releasing with quarterlies on drilling updates. Turns out they are all being abandoned and not commercial.
Stock fell pretty hard during this waiting period for us investors.
Dates between quarterly releases: Aug 27, 2015 to Nov 26, 2015 (3 months)
SKX Stock fell: $1.30 to $0.73 or down 44%
WTI Oil went up: $40 to $43.20 or up 8%
TSX Energy Index went up: 172 to 180 or up 6%
August 27, 2015 Press Release for Q2 Results: Third quarter drilling program at Thorsby striker drilled and cased 3.0 (3.0 net horizontal wells). Completion operations underway. Production test to follow. Results to be released mid fourth quarter. Not specific to Q3 results.
Three months go by without any updates.
November 26, 2015 Press Release for Q3 Results: At Thorsby striker drilled, cased and completed 3.0 (3.0 net) horizontal exploration wells. These wells did not exhibit commercial production rates and were shut-in pending abandonment.
Other minor drilling updates (SKX adds only about 100 bbls/d from short term test results) Drilled, cased and have or are scheduled to complete 6.0 (2.9 net - 50% SKX interest) Belly River horizontal oil wells at Wilson Creek.
Two wells on production:
- 1st On production November 4, 2015 and averaged 89 bbl/d (60 bbl/d share of oil production to Striker) of oil with minor associated gas over 20 days.
- 2nd On production November 17, 2015 and averaged 197 bbl/d (47 bbl/d share of oil production to Striker) of oil with minor associated gas of load fluid and reservoir water over 7 days. I don’t know if the water production is normal here. Should I be concerned about the water? Does anyone know?
Future plans - are SKX taking a very cautious approach? At Wilson Creek Striker has farmed-out its core Belly River drilling program to minimize risk. Striker will participate in these future wells at only 10% interest. Significantly scaled back interest in future drilling (at least in the near term).
Dry-Hole-Dusters at Thorsby – No future drilling plans mentioned? Do you think they drill here again?
Stock seems cheap here. But I don’t know if I should sell or buy more.