Sorry for any false hopes. I will not post anymore unconfirmed rumors.
It is not just doubling the production, it is the longevity of the production.
exactly. Simpy judging these wells on their IP is foolish. The real question is if they will hold up, how fast they decline and if they wil lever pay out.
That is pretty fast. I also understand SWN is in the process of constructing a pipeline south to LA Alt 2, where they will connect to an existing pipeline.
With no other division order reviews to perform and only 17 tracts in the unit, it shouldn't take long to prepare the DO.
For the uninformed, what is an division order and what is the significance?
When a well is completed and the operator chooses to produce the well a Division Order title review and opinion is required to confirm the fractional interest of every party with ownership interest in the minerals underlying the well or unit. An operator wants to have the Division Order complete before beginning to pay royalty (placing the well "in pay"). The Division Order is typically the most exhaustive and detailed review of title and often includes surveying all the tracts that are covered by the well or unit to insure accuracy.
Mention of "division orders" being issued for the Garrett well makes me wonder if I missed division order info regarding the original Roberson well in Columbia County. If division orders have never been sent out for that well, does that mean it was not "put into production" or could it mean that the Division Order title review is still under way? Or, are there other possible scenarios?
I think SWN may still be trying to do some science on the Roberson well. Steve Mueller mentioned at his presentation at the Citi conference on June 6 that they had isolated a portion in the heel of their lateral in the Roberson to do some further tests, but that they inadvertently fracked into the water above. He said they might sidetrack this portion and do some more tests.
Sorry, I missed that presentation. Maybe this is why my lawyer said the Roberson well is essentially "dead", and SWN dropped their pipeline project in the area.
Obed, could you give me any more info about that fracking into water problem? Just curious.
Joe, the webcast of this presentation is still available for listening at the SWN website: www.swn.com
Click on "Investor Relations" and then on "Events and Presentations." This should bring up a screen allowing you to register to listen to the webcast of the June 6 presentation at the Citi conference.
I just re-listened to the webcast and the comments about the Roberson start about 25.5 minutes into the presentation. Mueller of SWN does say at the end, "we may isolate this zone and try it again," but he doesn't give any assurance of this.