GREY:VFGGF - Post by User
Comment by
ofirmeon Mar 03, 2014 3:54pm
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Post# 22274388
RE:Waterflood Expectations
RE:Waterflood Expectationsok, primary production in this area should yield 10%-15% of ooip. waterflooding should take you
to 25% and repeated waterflooding will take you to 40% at the end. as the number of
waterflooding cycles grows, so does the watercut.
https://www.arcanres.com/investors/faqs/#faq10
Arcan has some general numbers on a different area, but it is relevant to show the expectations.
Most of the u.s oil shales (like the mississppian or even eagle ford) have high watercut to
begin with (mississippian in oklahoma could be 80%+), so I do not know how much
waterflooding can do there. I think eagle ford also have high watercut. pinecrest's has less than
30% watercut (if my memory serves me right).
The reason why pinecrest did not hedge more than they did, is that the timing of the results is
still not clear. we can all agree that the results should be xyz, but we need actual numbers to
confirm.
If you want to visualize waterflooding think of lower highes in a graph. each high equals 75%
or so of the former. in between you have 12-24 month of decline and than another 6-12 month
of increase in production.
Hope that helps.
Good luck to the company and to its shareholders.