This was a post from Ihub and my response is at the bottom. I think most will find this very interesting.
So I have been able to talk with Mike. Belize production maybe in a couple of weeks. SJ #1 was stopped at about 2700' with a circulation issue. There is the go ahead for SJ #3 and preparations are being completed as we speak. Plans are to drill to 4000' and technical issues are trying to be mitigated so any circulation issues may be dealt with.
Chumley lease is dead in the water but the 3 leases with 3k oil? have been finalized and are going forward with drilling plans.
McComas has been drilled and we should hear something in a week or two.
Madaley had some technical issues with hooking up to the gas line. Also when the gas was tested there was to much water in it so it had to be hooked up to a dehumidifier. My words as a layman and not the technical terms. This work hooking up the gas has delayed 4-5 weeks of drilling/production.
Molley is still out at the shallow well project and have no timeline update for that.
All in all Mike is still very positive yet sounds frustrated with the issues coming up but to be expected when drilling. Treaty is still young and in the development stage so lots of learning as they go plus there is always the cashflow issue as with any start up.
Mike said that Q3 will have a signifacant increase over Q1/2. That should be pretty easy considering they produce 400-500 bopm. Will be interesting to see how it comes in. Q4 should be a knock out of the park Q for them.
Thanks for the update. I will explain the water in gas issue. I don't know what the contract with the pipeline company calls for. The one we flow into at my job we have to have 7lbs of moister or less. Most all pipeline companies with a dry contract require about the same, at least the ones I have sold to. Remember we are talking about an oil well so the gas from this well is most likely flashing gas out of its oil. As the oil comes up through the tubing the pressure drops. As the oil enters the separator, the pressure drops. Every time the pressure drops gas flashes out of the oil. This is probably where we are getting most if not all of our gas for sale. The gas is saturated with liquids, water and oil. The dehumidifier that investtoski is talking about ( good layman term by the way ) is called a dehydration system or glycol system. Di-Etheline glycol is antifreeze. Tri-Etheline glycol or TEG is what is used in a dehydration system . The gas enters something known as the contact tower. The glycol is pumped in at the top of the tower at a temperature as close to the gas temperature as one can get it. The gas enters the tower at the bottom and rises up. As the gas rises the glycol falls. TEG attracts water into the molecule of itself. Lean glycol is dry and has no water. Rich glycol is wet and has all the water it can hold. So, as the glycol and the gas meet in the contact tower, they make contact(CONTACT TOWER) and the glycol drys the gas for sale. The glycol is sent back to the reboiler to cook the water out and sent back to the tower to dry more gas. The process is more complicated that this, but without getting so technical that I loose some people, this is how it works. ROLL TECO ROLL
So I have been able to talk with Mike. Belize production maybe in a couple of weeks. SJ #1 was stopped at about 2700' with a circulation issue. There is the go ahead for SJ #3 and preparations are being completed as we speak. Plans are to drill to 4000' and technical issues are trying to be mitigated so any circulation issues may be dealt with.
Chumley lease is dead in the water but the 3 leases with 3k oil? have been finalized and are going forward with drilling plans.
McComas has been drilled and we should hear something in a week or two.
Madaley had some technical issues with hooking up to the gas line. Also when the gas was tested there was to much water in it so it had to be hooked up to a dehumidifier. My words as a layman and not the technical terms. This work hooking up the gas has delayed 4-5 weeks of drilling/production.
Molley is still out at the shallow well project and have no timeline update for that.
All in all Mike is still very positive yet sounds frustrated with the issues coming up but to be expected when drilling. Treaty is still young and in the development stage so lots of learning as they go plus there is always the cashflow issue as with any start up.
Mike said that Q3 will have a signifacant increase over Q1/2. That should be pretty easy considering they produce 400-500 bopm. Will be interesting to see how it comes in. Q4 should be a knock out of the park Q for them.
Thanks for the update. I will explain the water in gas issue. I don't know what the contract with the pipeline company calls for. The one we flow into at my job we have to have 7lbs of moister or less. Most all pipeline companies with a dry contract require about the same, at least the ones I have sold to. Remember we are talking about an oil well so the gas from this well is most likely flashing gas out of its oil. As the oil comes up through the tubing the pressure drops. As the oil enters the separator, the pressure drops. Every time the pressure drops gas flashes out of the oil. This is probably where we are getting most if not all of our gas for sale. The gas is saturated with liquids, water and oil. The dehumidifier that investtoski is talking about ( good layman term by the way ) is called a dehydration system or glycol system. Di-Etheline glycol is antifreeze. Tri-Etheline glycol or TEG is what is used in a dehydration system . The gas enters something known as the contact tower. The glycol is pumped in at the top of the tower at a temperature as close to the gas temperature as one can get it. The gas enters the tower at the bottom and rises up. As the gas rises the glycol falls. TEG attracts water into the molecule of itself. Lean glycol is dry and has no water. Rich glycol is wet and has all the water it can hold. So, as the glycol and the gas meet in the contact tower, they make contact(CONTACT TOWER) and the glycol drys the gas for sale. The glycol is sent back to the reboiler to cook the water out and sent back to the tower to dry more gas. The process is more complicated that this, but without getting so technical that I loose some people, this is how it works. ROLL TECO ROLL
