Relaxx - 7 mile step | GXO Message Board Posts

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Msg  16 of 18  at  11/8/2014 1:54:36 AM  by

Relaxx


 In response to msg 15 by  bankstocks
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Re: Relaxx - 7 mile step

Thanks Bankstocks.

Now for a little more color on the well, etc.

The 7 mile step out was non-commercial as I suspected. The lease for this area was held previously by Crescent Point. Crescent drilled this well vertical and abandoned it.  DTX wanted to know why they had abandoned it being they are an experienced operator, was it water etc.? Due to land issues DTX decided to drill this again and re-entered it. So a quick drill down and then they placed a horizontal leg out. Usually each stage is fracced with about 15 tons of sand. In this well they only did 9 tons per stage. The reason was simple in that they didn't want to frac into another zone like water accidently when they were trying to determine what was there.
The result was that it wasn't water and there was oil in place and this zone is the same one in their main play north-east. This is what got them excited about what they had not that it was non-commercial. Now they will concentrate on another drill north-east much closer to their main play. This new site was really their #1 drill placement all along but due the land issues they opted for the re-entry first.
Nothing special in the above paragraph as analyst were informed of this and had to make a decision whether to report it or not. 
Also, we have seen an increase of the DTX's bank line. Since it's correlated to reserves we can safely assume that there will be an upgrade to reserves too. That is probably in response to the in fill drilling now active and the exploration portion having already filled in the areas needed to confirm boundaries for that equation. So DTX's 46 sq miles of lease is holding a lot of oil.
Hope this helps with any head scratching.  


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