RE:RE:RE:News Flowin the early days of oil and gas development folks drilled wells on a very close spacing - but quickly learned this was not optimal and could result in water ingress and quickly loosing the ability to produce anyhting. The spacing of wells is determined by the geometry and the permeability and porosity of the net pay interval/s and by various regulatory requirements. 25 wells would be a reasonable spacing for the number of sections that they have. If you look on the Waseka producing acreage to the NW there are a lot of wells on this sort of spacing.
This is a really low risk play given the definition of the Waseka Sands on siesmic and the production within the Waseka channel to the NW and the East. In addition this is shallow so drilling and completion costs are low - likely around C$500k and wells should take less than a week to drill and complete. They a single well battery is installed to separate sand, formation water and oil and all trucked offshite every week or so.
This property has the potenital to drive the stock to more than 50 cents and this would form the low risk bedrock to really build a sizeable oil and gas company - especially if the next acquisitions were in the Middle East or North Africa, as has been rumoured here.
If this happens then this stock could follow Bankers Petroleum and that was a TO at C$2.20 per share for C575 million.
I believe management have learned a great deal from Bankers and with the addition of Sarah Akkbar and Legere to the board the potential is far more than Bankers - far more.