This is good news. For a vertical well and relatively small fracs, I suspect that MGM is overjoyed. It's two bad the horizontal didn't get through the approval process. A second offsetting vertical well would have been nice to see comparable results. I'm surprised by the lack of clarity on the gas volume as that should have provided some measure of formation pressures???
I suspect the next test of the Canol as a whole is how much development can be proposed before a full scale environmental assessment is triggered. I suspect not much.
I also suspect Husky, with its current approvals and infrastructure plans are at least a year or two ahead of MGM and maybe three years ahead of other peers. This would mean that the Operator that can tie into the Enbridge line first will lock up take away capacity...Husky is ahead by a furlong....
The market should however react to the news and the likes of Peters & Co. should be doing a little dance on a penny stock like MGX.
I wondered about the comment of drilling and coring the Hulme...not a peep about what that was all about. That wouldn't imply a disposal zone or somewhere to inject NG into in regard to maintaining formation pressure would it? Could an operator gas lift the liquids portion and reduce the need for flaring?
Regards,