SYN - SYNERGIA ENERGY LIMITED

[Chief Wigam]

Up 14 per cent on Friday in London to 11.32, bodes well for Monday in Australia.

[Optionsman]

Have taken profits out last week and am now free carried.

Not sure why an announcement is taking so long. Are things not going to plan? Hmmm

[fraz2]

http://www.asx.com.au/asx/statistics/displ...;idsId=01544978

 

CAMBAY-77H ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ Interim Flow-back Update

ï‚· Cambay-77H continues to recover light oil and frac fluids

ï‚· Encouragingly, no formation water has been encountered during flow-back

ï‚· Flow-back results continue to show evidence that Cambay-77H can be a high

performance well

Oilex Ltd (ASX: OEX, AIM: OEX) is pleased to announce that Cambay-77H continues to

 

produce light crude oil and gas as the well recovers frac water during clean-up.

Cambay-77H crude oil recovered from flow-back operations is currently being transported to

a nearby refinery for sale, where it attracts a price similar to Bonny Light Crude. Gas produced

concurrently with crude oil during flow-back continues to be flared to ensure safety of all wellsite

personnel.

Samples of the oil, gas and water have been shipped to facilities for analysis. Preliminary

analyses of the recovered water have been received and confirm that the water is consistent

with frac water and not formation water. Oilex is currently awaiting analysis results for the oil

and gas samples.

Oilex is also pleased to confirm the following field measurements recorded during flow-back

and clean-up of Cambay-77H:

ï‚· Light crude oil/condensate average of API 48.3ÃÆâ€â„¢ÃƒÆ’ƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚º,

o Highest API value - 50.1ÃÆâ€â„¢ÃƒÆ’ƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚º and lowest value of 43.6ÃÆâ€â„¢ÃƒÆ’ƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚º

ï‚· Hydrocarbon liquid to gas ratio is calculated to be:

o Cumulative basis - ~120 bbls per MMscf

o Average while flowing the well ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ ~130 bbls per MMscf

o This is ~ 300% higher than anticipated as part of the well design

ï‚· Downhole pressure and pressure build-up surveys conducted during the initial flowback

operation have been compared to frac operations pressure data and confirm

the following:

o Original reservoir pressure from pseudo-radial flow results of the micro-frac

was calculated to be ~4330 psi, as announced on 02 July 2014

o Flowing Bottom Hole Pressure (FBHP) in the horizontal section was

measured to be between~2250psi to 2500psi.

[mjwk]

I read that the rate was 2mmscfgd and for it to be worth the effort ( commercial) it needs to be at 4mmscfgd. So its an each way bet . Ive traded it from 13.5 and sold at 19 as the buy side failed and some big sellers came into play. Wait for the news or take a punt? Not sure .

 

R / MJ

[Optionsman]

Where did you read the rate was 2mmscf/d MJ? If the perfs are plugged then this will cause the rate to be low. They are planning on doing a clean out with coil tubing.

The announcement had some good news and some bad news. Seems that the market focused on the good news overnight in London - up 8%. A CGR of 120 bbl/mmscf is outstanding. I'm concerned though that the apparent plugged perfs is actually partly reservoir related. They mentioned a flowing bottom hole pressure of 2250-2500 psi... If it was plugged perfs I would have expected this to be higher, given the high proportion of oil and water coming out of the well. Might try and run some calculations later today to confirm

[mjwk]

Dare I say it... on HC. We know its mainly crap but there are the odd good ones. This guy info was an interesting read no ramping just an explanation of the oil/gas process. Way over my head but you would absorb the info. Thanks for all your posts on the this subject , keep them coming. Interesting and informative . Onya, Oppy.

 

R/ MJ

[Optionsman]

Cheers MJ

 

Just read the posts on HC, and posted a reply. The guy seems to know enough .... to be half right.

 

I wouldn't pay too much attention to that 'calculated' rate though. The well is still cleaning up. Impossible to extrapolate from there.

 

Its a pure punt from here. I must say i've gone a bit cool on it though - mainly coz I have been burnt a few times in the past from small companies not telling the whole truth, or exaggerating the truth a bit. There is a lot more they could have said over the last few weeks, but they have chosen not to, which smells off to me.

 

I should also correct my own post from earlier. The downhole gauge sits above the reservoir, so if there is a blockage then it should decrease the pressure, not increase it. My mistake. Either way, its not really possible to deduce anything at this stage - we just don't have enough info. I am sure the company itself has some idea - its just that they have chosen not to tell us.

 

I tried running the numbers and it turns out that there are too many unknowns to solve it. Bummer.

 

[cooderman]

looks like support is back today....see how it pans out

I was hoping for an entry off .135 support or maybe even down to .12 if it closed all those gaps

 

not to be...will keep an eye on it if it falls away again...may be a quick trade in it

[Duster]

Still trading this one. Back in <10c and took some options on-board this time as well.

 

Options possibly worth having a look at, at these levels. They kick in at 15c in the head stock, which I believe we will see again shortly. Sept 2015 gives plenty of time and at 1.4c, the potential upside in OEX gives good leverage. News due any time now.

[Duster]

Re: options

 

potential upside in OEX gives good leverage

 

as with all derivatives, it goes both ways, as was reinforced today. Although I still don't believe the report was that bad but obviously the market does.