American Energy Production Inc(fka AENP)

[AlanK]

GEH -

What you've got is NG dissolved in oil, like the CO2 in a bottle of sodawater. Reduce the pressure at a point (the end of the casing) and the NG froths out of solution and helps drive the oil towards the pipe. BUT the further you've got to go, the more likely it is that the oil will lose all its gas and be left behind.

That formation is wide-open to the gas, but not to the oil. The oil is viscous and has high drag flowing around every pebble in the way. Frothy oil has much less drag.

The solution is short distances and multiple places to go, so that you don't waste your gas pressure getting the most oil out that you can.

They could do this with horizontals, but like you I lean towards a bunch of verticals.

It's a different problem than a gas well.