1) I have said all along that the information they gave us on the C-7 and the C-9 looked promising enough to the point that these zones alone could make this a very successful well.
2) I think within the next couple of weeks we will find out just how good they are.
3) People have been using the term "dry-hole" to describe this well and this can't be any further from the truth. All they did was plug the hole below the C-9.
4) I feel like they were very encouraged by what they saw in the bottom portion of the hole and is why they were doing everything they could to run the proper tests to prove it. This caused the delays over the last couple of weeks. Finally, the cost and risk of the entire well dictated to suspend any activity below the C-9.
5) It sounds like the operator(SK Energy) was handcuffed by some of the Columbian laws that don't allow the use of an oil-based mud in drilling which would have made the drilling in this type of structure much easier. It would also have helped with the integrity of the hole which sounds like another problem they were continuously dealing with.
6) A stock down 35% on 5 million volume because of an announcement like this when we might have a very successful well within the next few weeks? Sounds like way to many traders and not enough people who understand what is actually taking place here.
7) Wildcat wells in locations where there hasn't been any drilling activity within 20 miles can sometimes be difficult. Plugging the bottom of a hole in order to produce from zones up the hole can make this a very good well.
8) If we knew nothing else before this well started that we might have 340'of potential pay zones, we would be very pleased with the result.
Unfortunately the market always seems to overreact. I never had a position in HUSA but in the 7s was a good time to take advantage of a classic market overreaction. I plan on holding for a while regardless of what it does near term. I may add to my position.
Check out the good news. The market totally misinterpreted the news today. Well isn't being abandoned!!!
“I would like to make it clear to our investors that the Tamandua #1 well is not being abandoned,” John F. Terwilliger, chief executive officer of Houston American, said in an e-mailed statement today.
“Current ongoing operations are to make a completion attempt in the C-9 and C-7 sands,” he said. “As previously reported, the Tamandua #1 well exhibited hydrocarbon shows in the C-7 and C-9 sands, and logged approximately 200 feet of net resistive sands in the C-7 formation and approximately 140 feet of net resistive sands in the C-9 formation. We are eagerly awaiting the results from these completion attempts.”
Nice Post Bone - and I agree with most of what you are saying... But you really that within the next couple of weeks we will find out the results of the evaluations? - It seems like after taking so long to get this news, many are disappointed and don't want to wait again or go into another "quiet period".
Yes, I think they can have the result within a few weeks because:
1) It is already drilled
2) They have already plugged the bottom
3) They already have a string down to the C-9
4) To test, all they need to do is perforate the string and finish their tests
5) Once proven, it shouldn't take very long at all to turn it on.
6) The one delay could be if they try to run another string to the C-7 and try to produce from both without commingling.