Replies to post #1783 on Deep Well Oil and Gas (fka DWOG)

[GoldRus]

Yet Youyou loads the boat.

[wshaw14]

So, do you really think the following a negative?? Looks to me like they are right on track. Each month production has increased and ratios have decreased. I wasm aware that production would not max out over night.

"Bitumen production commenced at the Sawn Lake, Alberta Steam Assisted Gravity Drainage ("SAGD") demonstration project on September 16, 2014. Bitumen sales, on a 100% basis for the producing well, averaged 126, 150, and 221 barrels of bitumen per day during the first, second and partial third thirty day periods since the start-up of SAGD mode production and ending November 24, 2014. Corresponding steam oil ratios were estimated at 8.39, 7.61 and 6.32 respectively. These early stage production numbers compare favorably to an analogous reservoir in a demonstration project operated by another company of similar reservoir type that we are monitoring and using as a basis of comparison."

http://panorient.ca/

[wshaw14]

acrock.., I will post the full text for you. When not taken out of context your exercpts are really quite positive.

Canada - Sawn Lake (operated by Andora, in which Pan Orient has a 71.8% ownership interest)

The objective of this initial pilot well pair was to establish that the SAGD process works in the Bluesky formation reservoir, and results to date support this. We are now focused on achieving commercial rates and targeting to reach production of between 345 and 370 barrels of bitumen per day, with associated steam oil ratios of between 4.7 and 3.8. These production parameters correspond to the Best and High case estimates used by Sproule Unconventional Limited in the December 31, 2013 NI51-101 compliant Sawn Lake contingent resource report for a well pair drilled in a 15 to 20 meter thick reservoir with no bottom or top water. We expect to achieve these results in early March 2015 when reservoir modelling indicates that the steam chamber will reach the top of the Bluesky formation sandstone reservoir. Maximum production is anticipated to occur in September 2015 corresponding to the end of the first year of production. However, production results to date are of course not necessarily indicative of long-term performance or of ultimate recovery.

The Sawn Lake Partners will meet at the beginning of 2015 in order to decide upon an agenda to spend a capital budget of $12.0 million (Andora share: $6.0 million). This budget would include the drilling of an additional well pair (approximately $8.2 million gross) in addition to Phase 2 front end engineering and design, and facility upgrades. Andora's cash position at September 30, 2014 was $12.1 million, which is more than sufficient to meet the expected capital and operating requirements through 2015.