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Diaz Resources Ltd V.DZR



TSXV:DZR - Post by User

Bullboard Posts
Post by hawkowlon Oct 04, 2005 9:26pm
280 Views
Post# 9656981

Response on commingling (Algrove)

Response on commingling (Algrove)Good point you brought, that I reflected quite a bit on it yesterday. I am not a geologist/oil man but my understanding is that normally you can not commingle more than two zones at once (one inside and one around the tubing, whatever that means). However, my conclusion was that this case is different and that they will be able to commingle all the zones at once, when the extended testing is finished (which could take us beyond year end, as Encana is a conservative major that would want to do it right for long term production efficiency). The reason I concluded it is different in this case, is that as you will note, unlike the usual, the pressure of the higher zones is higher not lower in this case. Therefore, gas flowing from below will not in this case block the upper gas from flowing. The opposite will likely happen, the lower gas will be sucked up faster by the upward flow of the higher pressure gas in the upper zones. The NR was unambiguous that once the extended testing is completed, all the zones will be commingled and producing. In the meantime, during testing, one zone at a time will be producing (note however that the NR said it is producing to "sale" i.e. the production tie ins are in place and they are getting revenue during the testing).
Bullboard Posts