DJ2 test
I got a couple PMs about Jim Flores' comments about the ongoing DJ2 test, so I thought I'd post a common response on the board.
I've re-listened to sections of the call several times, and am still not sure what he was reporting, but this is my interpretation, right or wrong:
At 39:45 into the call “… Davy Jones 2, we are conducting flow tests of the Wilcox sands, at this point and time most of the testing at this point has not yielded commercial results of hydrocarbons but its given us confidence in our flow rates from the deeper sands that we’re flowing a lot of water and not much gas, so at least the permeability and porosity are there, if not the productivity. The same thing on Blackbeard West #2…”
I believe what Jim meant was that they were currently testing the DJ2 Wilcox sands, and that the testing completed to date on the deeper sands (i.e. Tuscaloosa that was tested in May) produced water that demonstrated permeability and porosity, but not productivity, and that they had similar results at BBW#2 on that completed test. I don’t believe he meant that they were flowing water from the Wilcox at that moment in time. I’ve always had a hard time understanding him when he presents, because he self-audits as he speaks and stops mid thought and rephrases things, and speaks so quickly, he sometimes leaves out key details that leads to confusion. Hopefully we get some clarity from EXXI next week.