RE:Could be 300 barrels a day Agreed barryt34, I also think that the secondary zone is contributing more than expected which is why they're taking the time to fully understand that zone with pressure drawdown/buildup analyses. It tells me they're interested in the "long term" rather than simply pacifying those who only want to pump out a 'quick buck'.
I know that a lot of folks believe that they have the siesmic and therefore should already know where the oil is, but keep in mind that seismic only provides information on the "structures" but doesnt provide any information on whether that structure contains oil. gas or water. The only way to truly know is to drill the structure, and assuming hydrocarbons are found, to do proper testing with initial production, things like drawdown/buildup analyses. that confirm hydrocarbons and how large the reservoir might be..
Keep the faith folks. IMO they are doing the right thing here. All good IMHO.
barryt34 wrote: I can tell you already the lower/secondary zone "connected to the on site storage tank" is already producing oil at better rates than the entire group expected. BUT, this is not the juiciest area in this formation. The "primary zone" is, and that is what they're working on now. They also meticulously analyze the process to maximize implementation in this formation going forward, so perhaps well #1 takes an extra few weeks or month to give us the full scope.
SHP modeled their success being based on only 100 barrels of oil per day per well. All indications are, well #1 will blow that out significantly. Things can go wrong in the oil business, so variances can occur. But they might have nearly the 100 bbls per day coming from the secondary zone already! I do not know this for a fact, but I sense that the production isn't dribs and drabs of oil.
If both zones combine flow rates (which also don't start out as a peak.....they grow, then start a decline later for decades) of 150-200 barrels plus per day, we are GOLDEN. But I'm very confident the 100 bbls per day are essentially a lock, otherwise they would not already be planning to drill well #2! Here's the release with a few of my ow highlights.
Bottom line, Shoal Point is a Strong Buy under .25 CDN