RE: RE: RE: maystealer wants to steal your money..The 5000 barrels per day was based on discovery of 1936, that is 74 years ago. Are you sure the oil is till there to produce 5000 barrels to day? Why did they abandon this 5000 barrel if it is profitable? Have anybody think about
My take on this. Back in 1936 the worlds biggest oil producer was the USA, which was a net exporter to the rest of the world. Europe got most of its' supply from Romania and Persia. Saudi Arabia had discovered the Gahwar field 3 years early but had not yet started production as there was no infrastructure in place.
There was already sufficient supply from existing producers that development of Iraq and Saudi oil was not needed then. After the war oil from Saudi and iraq was finally being developed, but then a 5000 bbl/d well was not good enough to compete with the 20,000 bbl/d wells. Later, political events (Saddam) prevented large scale investment in Iraq so the well just sat there. Now the well is 74 years old so any casing installed would be corroded to the extent that for safety reasons the well would be abandoned and re-drilled nearby.
What I don't know is if any logs were run on the well or if any stimulation was done. That 5000bbl/day well could fall to 1500bb/d after a year or stimulation could make it a stable 10,000bbl/d producer. What I do know is LSD paid quite a premium in future royalties to double their position on the block, so they must be fairly confident they have a winner here.