[XingTheRubicon]

I have a quick question concerning an Oil and Gas investment that I'm considering.

I have a few other joint venture interests that have worked out well, but I have a question on this particular one.


Here's the thing, the well was looking great, but it is still cleaning up. The pressure is very good and the zone is notorious for being extremely porous. The problem is the water cut is 80 to 90%, with a 10 to 20 percent oil cut. The zone has only been pumped and flowing for 5 days and everyone insists that it'll take 2 weeks or more to know what it's capable of.

Here's the stats:

It free flowed at first with tremendous pressure (500+ bbls/day of fluid) but could not keep going.

It was swabbed 4 or 5 times, with the same result.

It now has a pump jack running 24 hours/day at a 100 bbl/day setting. (producing for a total of 5 days)

It is flowing 250 bbls/day of fluid. 90% water/crap and 10% oil.



I have been told that since it has good consistent pressure (250 bbls of fluid w/100 bbls/day pump) that it's only a matter of time before it cleans up and shows a significantly higher oil cut.


Any insight will be greatly appreciated.

[nth]

No one can answer this question blindly.
The data you provide does not answer your question at all.
You need to provide geological data.

Just wildly guessing, I will say if you are drilling on a virgin area, then without enhanced recovery technics, the production number has no where to go, but down. It is highly unlikely it will go up. You have better luck winning at the roulette table in Vegas than to see that number go up.