Petro Rio S.A. HRTPF

RE: RE: News on Upstream Online

[TimeOnTarget]

VanWilder--

Tudor Pickering Holt's note is interesting:  

 

"Investment bank Tudor Pickering Holt speculated that the "wording from HRT’s results release on the Wingat well combined with stock performance and CEO’s exit suggests that the well is a dry hole."

A longer timeframe for logging and testing would be expected with a discovery, the firm said in a note."

 

Sometime in late April Mello was quoted as saying that they had drilled 2800 feet in 22 days, if I recall correctly.  If that is correct, and using that rate, they should have reached the 5,000 total depth described in their investor presentation in about 40 days.  It has been 50 days now.  They said they were wrapping up next week.  

 

If you are planning to drill more wells and the clock is running on the price and total amount of time you have the rig contracted for, how long would you test--whether you hit something or not?  If you do hit a commercially sized accumulation, I wouldn't think you would want to waste a whole lot more time-- kind of mission accomplished, let's farm out some more for a higher price before we do more work kind of thing.

 

I would, however, find it surprising if they were continuing to test for approximately two weeks if they hadn't found anything.

 

Kind of rank speculation on my part, but that note from Tudor struck me as pretty much the same . . . . .