Join our investing community

Trading CIG: unfortunately the oil pump makes troubles!

Discussion in 'Shares' started by wdongli, 12th Sep, 2011.

  1. wdongli

    wdongli Well-Known Member

    Joined:
    31st Mar, 2010
    Posts:
    1,292
    Location:
    Perth
    CIG: too much comes out of the hole!

    CIG drills in the Kyrgyz Republic for oil and seemed its new hole shows some oil but unfortunately its pump air compressor has made a lot of the trouble to get the oil to the ground tanks or pipes.

    "It was previously reported that an air compressor would be used to obtain definitive flows rates however due to the large volume of fluid in the wellbore (around 35 bbls) the use of the air compressor proved unsuccessful. Going forward the company will run a PCP downhole pump and put the well into trial production. This is expected to happen within the next 2-3 weeks. Based on the results of the trial production a forward plan will be made which could include appraisal/development drilling, in-well-bore radial drilling or fraccing."

    http://imagesignal.comsec.com.au/asxdata/20110912/pdf/01217119.pdf

    It has disappointed the market very much but I feel happy that I bought it back at $0.011 after I saw the picture of the oil in a rusty barrel and read the words "due to the large volume of fluid in the wellbore(35 bbls). The problem seemed CIG greatly underestimated how much fluids or oil cold come out of the hole! Really hope it could get more trouble even after CIG increases the wellbore for 1000 or 5000 bbls!

    It is hard to image for the rich Aussies! Logically if a low efficient oil drilling team could get some oil it should have more in the ground. Illogically traders or bargain hunters don't care oil, the cause why CIG drills, but care more about their own trading system or trend. Are they stupid? No! They want to see CIG's oil in the refineries. The only problem is when everyone could see the oil in refineries, they should pay much more!

    Let's wait and see how much oil they could get! If the oil is big enough, the low efficiency would be overcome sooner or later since it could hire some external drill team rather than its own one!
     

    Attached Files:

    Last edited by a moderator: 12th Sep, 2011