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Gold/Mining/Energy : KOB.TO - East Lost Hills & GSJB joint venture -- Ignore unavailable to you. Want to Upgrade?

To: dad who wrote (14739)	3/13/2001 1:50:32 PM
From: grayhairs	Read Replies (3) \| Respond to of 15703

Hi dad. <<<...your thoughts please?>>> 1) ELH is one very large fish bowl !!!! 2) Routine drilling and completion operations are very poorly understood by investors(???). Even when wellsite operations and events unfold quite routinely, they still occur differently from most investor's(???) expectations. This creates disappointment, fear, panic, profit taking and perhaps even very good buying opportunities. 3) Much of the scant information that we access is at least third or fourth hand. People conveying "facts\details" are usually very well meaning but sometimes do not themselves really comprehend what it is that they are conveying. And, those receiving it are often in the same situation. Repeat the hand off just a couple more times and "facts" can become badly distorted. 4) Time and a few more $$$ will soon cause BKP#2 to yield her treasures more willingly. The question now is, how much more time and how many more $$$. Probably not too much of either by the sounds of things this a.m. 5) I firmly believe that BKP#2 will be a prolific and very profitable producer for the JV. <<The initial perf was not totally successful in penetrating the formation.>> BKP#2, whether by design or otherwise, is not the first well ever completed with multiple perforating runs. Many wells are. The JV would certainly have preferred to have employed a tubing conveyed perforating gun. But, that opportunity disappeared when they were unable to recover the cemented drill pipe from downhole. So be it. They now do the best that they can with what they have. A friend told me that, thus far, wrt perfing we have (a) a failed perf attempt Friday (b) the original perf on Sat (c) the Sun re-perf of 1/2 the zone (d) a failed re-perf of the second 1/2 of the zone yesterday, and (e) a pending (possibly now completed??) re-perf today of the second 1/2 of the zone. <<There was something between the casing and the formation that was inhibiting the flow and a decision was made to re-perf in two stages.>> Every oil\gas well drilled experiences what is termed "formation damage", or "damage". Formation damage is simply an impairment of the virgin insitu permeability of the rock. The result of this damage is that it limits the natural flow capacity of the formation. Damage may be mild or occassionally it can be very severe. Severe formation damage can usually be minimized\overcome through stimulation treatments. Damage is assessed during completion operations by monitoring pressure drawdowns and buildups at the wellhead during the cleanup flows. Formation damage occurs for many reasons. Drill cuttings get pulverized and jammed into pore throats. Drilling mud gets pushed into the rock and the particulate matter of the mud gets lodged in the pores of the rock. Chemical reactions can occur between the fluids of the mud system (or cement filtrate, or completion fluids) and the clays in the formation causing the clays to swell. When the casing is cemented in place, some cement and cement filtrate are squeezed into the near wellbore pores\fractures in the rock. Debris from the perforating gets lodged in and plugs pore throats. All of these factors reduce the cross sectional area available for the flow of fluids through the minute pores of the rock. This impairs permeability and flow. We have all seen LHG's photos which show a pretty nice gas flare at BKP#2. We do not know choke sizes or pressure responses during the flows and subsequent shutins so it is difficult to interpret the true significance of the flare. But, just based upon those photos, I'll venture to suggest that the damage can be largely mitigated. BKP obviously believe that a heavier perforating charge should enable them to "reach beyond" some of the near wellbore damage. Hence, they are re-perfing. This all seems quite logical to me because drilling evidence did suggest that BKP#2 had encountered some pretty heavily fractured and highly permeable rock. It won't take too much just to "tap into" those fractures and restore a lot of flow capabi;ity. When they do, the flare will probably reveal their success. When they complete their perforating job, they will have some additional cleanup flows with brief shutins. Then they will need to run bottomhole pressure recorders to the bottom of the wellbore. When the reservoir pressure has been allowed to stabilize (maximum probably about 12 hrs since a highly fractured reservoir) the flow test can start. IMHOBWDIK, we really ain't seen nothing yet, dad. Have a great day. Later, grayhairs