I wanted to give everyone an update on our drilling program and clarify my comments in the last post regarding the wholesale fuel business. As I indicated previously, we're significantly increasing the pace of development of our E&P assets so let's start there.
We have completed the Leonard #2 well (cased, perforated, stimulated) and are installing production equipment today to begin testing. The fluids produced during the completion process look very good - much better than the early indications on the Leonard #1. I'm not going to guess at estimate a number for the 24 hour IP test, but I expect it to be substantially better than the Leonard #1.
I've noticed a couple of comments about my last post that indicate that some investors may have taken what I wrote to mean that we are not pursuing opportunities in wholesale fuel distribution. This was not my intention. What I was trying to communicate is that we fully recognize the risks associated with this business and are being careful. This means we're looking for the right way to enter the business, for example through a JV. We could also monetize the asset and possibly retain some portion of the ongoing business. My point is that we're looking to maximize shareholder value without taking on risks that the company can't handle.
We are spudding in the Leonard #3 well today or tomorrow. The #2 well went from spud to completion in 12 calendar days - a vast improvement over our first well. As I wrote in my last post, the operational tempo is increasing substantially. Stay tuned!
Best,
-Shannon
How many barrels a day is Leonard #1 currently bringing to the surface?
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