ADX 0.00% 0.6¢ adx energy ltd

Had some time to read the ADX release from 2nd of July again and...

  1. 891 Posts.
    lightbulb Created with Sketch. 29
    Had some time to read the ADX release from 2nd of July again and I do not like it.

    ADX perforated the best part, the Pa IV. Obviously they had nitrogen in the well, a hint that they perforated under balanced. You can assume that the reservoir pressure is perhaps about 200 bar at that depth. Depending on the fluid level in the well (solid free completion fluid?) you can have a delta p of 50, 100(?) bar to test the perforated reservoir. And as written in the release, they were not able to manage to get some gas to surface, means no gas flow. As explanation ADX offered nonpermeable filtrate from mud. If we have a delta p, high enough, gas will go through filtrate. I would say in the cases of a low reservoir pressure the gas does not want to flow through the zone, flushed with filtrate.
    I am afraid we see a f%$&^ up again. And there could be more than one explanation for no gas flow:
    - they missed the relatively thin reservoir with the guns
    - too low reservoir pressure because somebody else produced the gas already
    - the reservoir has a too high water saturation and you see a water influx instead of gas
    - formation damage from mudcake and/or mud filtrate
    - the permeability of the reservoir is so low, that you do not get much gas flow, in combination with the water saturation
    In my opinion: if it would be a good reservoir, you would see some gas after perforation, although you damaged the near wellbore area with the mud . Still some hope to see a pressure build up, gas during the weekend and that the acid has some positive effects. But would not be surprised if they decide to P&A the well?
    And I got only one dodgy explanation for the tiny hope. I think I remember that Adx said they had a kick, when they drilled into the deeper formation. Having a kick you need weighting material, as calcium carbonate or baryte. If it was a low pressure kick calcium carbonate is ok, if you have a high pressure kick you need baryte. Calcium carbonate can be acidized. Baryte not. In such a case only the perforation or a frac job can help you and I would doubt an acid could help much, even when you got siderite in the matrix ...?

watchlist Created with Sketch. Add ADX (ASX) to my watchlist
(20min delay)
Mkt cap ! $10.28M
Open High Low Value Volume
0.0¢ 0.0¢ 0.0¢ $0 0

Buyers (Bids)

No. Vol. Price($)
11 5032082 0.5¢

Sellers (Offers)

Price($) Vol. No.
0.6¢ 4939115 8
View Market Depth
Last trade - 16.12pm 25/09/2020 (20 minute delay) ?
0.000 ( 16.7 %)
Open High Low Volume
0.5¢ 0.5¢ 0.5¢ 8000
Last updated 10.41am 25/09/2020 (live) ?
ADX (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.