Petron Energy II Inc (fka PEII)

[goeagy]

Nice these are shallow wells. Easily worked over at a rate of two per day providing the distances aren't to far for rig move and providing the rig crew isn't lazy LOL.

Shallow wells take less equipment obviously and to a certain extent do not wear out as quickly. Assuming these are total vertical and no directional or horizontal is another asset to the longevity of the equipment in a well. Couldn't find anything about H2s levels if its present in high concentrations the deterioration of the equipment is a little quicker. Im not sure how they class wells in the US but here a sour well above certain BHP(bottom hole pressure)/release rate can be classified as class 3. If this is the case then time to work them over will take longer as there are more precautionary steps required to work on them as well as a class 3 bop system is needed.

Anyway those are my thoughts. If were truly producing 75 bbl a day and break even is a hundred and we still have 17? wells left in the one area to put back online i can't see any reason why profitability by the second quarter, as stated by Mr. Smith, wouldn't be achievable.

GLTA