Replies to post #7644 on Petron Energy II Inc (fka PEII)

[Phatlander]

I think you have mistakenly written off El Nina and Covenant. The wording in the PR is not Floyd's strong suite, IMO, so if you stop reading too soon you'll definitely not have the whole picture. Here's part of that PR:

Additionally, after its evaluation period for the LaNina #2, Covenant #5 and the Gerner #2 wells, each well lacks the natural virgin reservoir pressure to establish commercial production in the historical Dutcher Sandstone. Although the natural pressures were not present the company's swab test confirmed the presence of oil as stated in the July 11, 2013 press release. The Dutcher Sandstone has been productive in this area since the mid 1920's and is a historically proven oil and natural gas sand. Floyd Smith, President and CEO of Petron Energy II, Inc., states "With the many years of primary production already achieved in the Dutcher Sandstone we knew these three wells had Dutcher sands in them which had not be produced, which if they are not pressure depleted should allow us the potential for acceptable commercial rates of production." Smith further states, "Now that we have completed our evaluation period and discovered each well will not achieve commercial production from natural reservoir pressures but will benefit from our CO2-EOR(Enhanced Oil Recovery) program, we intend to begin injecting CO2 into the Dutcher reservoir to increase the reservoir pressure in the Edwards field in the next 7-10 days."

Smith goes on to say, "In our November 6, 2013 press release we stated that we would begin Secondary recovery operations in Oklahoma during the month of November. Performing CO2 injection procedures on the Dutcher sandstone will allow us to recharge the Edwards leases, which includes the LaNina #2, Covenant #5 and 16 other wells and effectively produce more original in place oil. We are a secondary recovery company which relies on production from the development of each lease and CO2-EOR is the process which provides constant commercial production at acceptable levels."

So, if I understand it correctly, they were hoping the Dutcher Sands would still have sufficient natural pressures. But finding that to not be the case, they began to build pressures by injecting CO2 into the fields, to build pressures to sustain commercial production. So, timing wise, news is due any day now. Whether the 7-10 days is the whole injection procedure, or the phase at which they measure again to see if pressure is building and worth continuing to completion, I don't know.