Petro One Energy Corp CUDBF

RE:RE:RE:RE:12 wells x 147bopd = 1,764bopd

[GreatSwami]

Thanks for the advice longshortman. I did as you bid and went to check on Sedar - and i apologise for not doing so much sooner. There is one heck of a lot of really "useful" information buried within those reports - most notably from my perspective the 29th July MD&A and then the 21st March 2014 MD&A.

It did most effectively answer my questions in regard to the value or otherwise of several of their properties - most notably the Bromhead farm out to ARC as well as the Rosebank property.

Most interesting hour of my time spent this past week!

Basic synthesis of my reading:

They have drilled 7 wells on what they must have figured were their best prospects and spent something like nine and a bit million dollars (with rounding) - and have a total of two net wells averaging a little less than 15 bopd with a (very) high water cut - as long as they do not produce them steadily that is - when the water cuts go up and the oil cut down...

As well it seems that the ARC well at Bromhead fizzled out without reaching anything more than barely paying itself out? (POP did OK as they had all the reward - the 10% GORR - and none of the risks - the drilling, completion and operation costs!) ARC dropped their farm in option on the remaining land there and just kept the producing quarter while licking their wounds?

It was also revealing to see that the Frobisher beds had become tight and nonreservoir where they drilled their 11-29 Rosebank test well - and that even though the Alida produced a little oil - it was basically an uneconomic ocean skimming operation?

As for the South Reston Lodgepole - what the heck do they expect to get from something with 10.3% porosity, a 51% water saturation and a 0.63 mD (maximum?) permeability? It does not matter that there is the scent of a hydrocarbon there in that Waulsortian mound - its basically over half full with water in most of the available pore space! (The oil is just the stain and the smell left behind on all the tighter rock perhaps).

The Koreans are in for an interesting ride methinks? I shall not even begin to pass judgement on the Viking prospects at Milton where over six million dollars have been spent to establish that the main Viking conglomeate is a gassy and oily water reservoir? (And for upside they are planning to drill where there is no conglomerate - in that streaky tight silty sandy laminated shale part of the section in order to avoid that problem for future wells? Yes the stuff that will barely put out more than a barrel or two a day of very high GOR - and still wet - oil on a vertically drilled and highly stimulated well...)

Hmmmmm!

I note with even greater interest that the management has repriced some 6+ million options down from 40 cents to 31 cents and stretched them out to July the 31st 2024 as an expression of their supreme confidence in the success of the company. Nice to do if you have the chutzpah to get away with it!

GS