Charts, the PRs, the whole bit about pumped put undelivered oil, raised a lot of questions. Many of us had doubts. These questions were put to Lou. The quote below is from Lou's report on his trip to Oil City. In this post and in others he provides assurances that the undelivered oil is BD's. So, maybe Lanza was lying to Lou as well.
Lou wrote:
"Rain, limited tank battery access and undelivered oil.
The entire north west state of LA is like a pool table with soil that is a mixture of fine sand, silt and clay. Water does not go thru this type of soil, it just sits there and turns to soup. Especially with an evaporation ratio of nearly zero because of the high humidity. Because of this we do have limited access to some of the tank batteries and though the money’s are certainly needed, we stored this oil at $60-70 and here we are now at $74. The dry season is at hand and I expect to deliver our stored oil as well as production, soon. For those who question how we can store all this oil, the answer is easily, as we have 10 s of thousands of barrel storage cap. The walls of Joe’s office are covered with erasable boards listing each lease, the number of wells on each lease and the amount that are open and pumping for that lease. Beside that is the depth of oil in the tank battery for that lease. Each day the tank is sticked to measure the oil depth. This also gives you the production, and if the tank needs to be picked up. Of all of the leases, I only noticed 3 tanks that were near the 7 foot depth. At aprox 1” per day, that gives us another 36 days before there would be a storage problem in those tanks only. And again, the dry season is upon us.
I did not count each lease or each well on each lease, nor the amount of those wells that are pumping. But all that info was available on the boards around the room. I did begin the task, but came to the conclusion that it would take a full day. So I did a quick estimate and came to the conclusion that there are 1200 or so wells and over 500 in production and that these wells produce in excess of 8000 barrels per month."
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