Second Wave Petroleum Inc SCSZF

RE: kooteni

[kooteni]

It's obvious you know little or nothing about reservoirs or production whereas I have 30 years experience in the oil patch.

First off the well is being restricted, The pump equipment currently installed can not pump all the oil out of the wellbore.
ie; the fluid level is at surface in the annulus. When a well is producing at maximum rate with a pump, the fluid level
is at the pump (and the pump is at the kick-off point  approx 9000 ft.) in this case the gradient of a 9000 ft of oil results in an extra formation pressure of 9000 x .3psi/ft = 2700psi This back pressure is restricting the flow into the wellbore. In a pumped off condition the same pressure would be in the range of 400 psi. If the pump equipment is designed for 350 boepd the production will remain at 350 boepd until the annular fluid level drops to the bottom. This is why I am confident production decline will be slow over the next 6 months.

As for waterflooding the BHL, this process has been used for 50 years in the Swan Hills area with proven success.

I stick with my forecast on a payout of 6 months.

Ultimate reserves are extremely conservative and do not include increases as a result of waterflooding.

You mention that ARN has thicker zone and higher ultimate recovery. Economics are more than who has the most
oil in place. ARN's wells have lower permeability, decline quicker and take considerably longer to recover the
same amount of oil. This will affect NPV - Net Present Value. In addition because ARN wells have lower permeability,
they may have to drill 3 wells/spacing unit to properly drain the oil in place whereas SCS may be able to drain the same size of land with two wells.

You claim I should have found the porosity and permeability values if I had done my DD, however you
failed to mention where you obtained these #'s. Excuse me if I don't believe you.

To me you sound like a Basher, with little or no idea about the oil patch.