We should hear some news from the 2nd Tenn well. I believe the Frac job is scheduled for Monday. There is a possibility we will hear something out of RU-7. It primarily depends on how much time they spend on completing the newest Zone. Hopefully its more cooperative than RU-3.
If they are fracking the well this week, it may take a week or so to get the fluids out before it starts flowing (hopefully it will start flowing that is), but not sure with those pourous lime rock formations what time frames they will need to use the mud pumps to get the chemicals/water out. In any event, we should hopefully hear some good news in the next couple of weeks anyway, if not from Tennessee, then from Alaska. It sure is good to be able to get news from more than one location.
Wonder how much news it is going to take to move this stock back to Book Value?? Seems like even with the gas well, which is a really positive discovery for their Alaskan plans, the stock still has a hard time moving up. Same happened with RU1. The shine last a day or two then the stock tanks again. Frustrating to see.
On completion type work (perfing, fracing, swabbing, etc) you typically do not need a rig over the hole. Just look at the current situation for Otter and the Tenn wells. The rigs have moved on.They should be a good ways forward on RU-7. The wildcard is the new zone.
I thought they had a subcontractor working RU 3 still. There was a coiled tubing unit, and they were renting the unit and had a crew working it.
They never said RU 3 was a failure (or Otter) but that they needed to rent different types of equipment. That could be a week or a month or longer. But they'll let us know.
If they don't need Rig 35 for RU3 then they would do the pump on RU7. But sooner or later we should stop hearing about pumps on individual wells and just assume there will be maintenance from time to time.
After this summer there won't be as much worry about individual wells.
Sentiment: Strong Buy
Richard, in my previous posts I have stated that we will be seeing improved performance out of Alaska. Without the new zone in play I believe we would see this from RU-7. As you know its hard to determine the duration required to bring a zone on line or when to give up on the zone. Aside from that, their performance will be improving. I am confident Knoxville based Miller management has not been thrilled with Alaskan performance despite what they may say in public.