Sorry for any false hopes. I will not post anymore unconfirmed rumors.
Thanks for the info! I think the question now is whether this play will shift focus into north LA or if SW Arkansas will remain a point of interest. Here's hoping good things for both areas!
Yeah was just reading that, long way from 800 forsure, but didnt muller say he would be kinda happy with 200 back on the annual call? Because he thought they could "work" it up some. Stating at 300 instead of 200 to "work it up" gains a little.
The discussion was fun anyway. As long as we know it was a rumor. I doubt that anyone expected full accuracy.
301 bpd is almost three times the Atlanta well , they seem to be going the right direction. I hope their yields continue to improve.
Did anyone else notice the statement in the press release that SWN plans to increasing capital investment in the Brown Dense in 2012? That's a positive. Here's their exact statement:
"The company expects its capital investments program for 2012 to be approximately $2.1 billion, a decrease of approximately 5% compared to 2011. Southwestern is currently planning to shift approximately $50 million of additional capital investments into New Ventures in 2012, in particular into the company's Brown Dense play"
...they went on to say that they would be using the additional capital for additional leasehold acquisition and potentially adding an additional rig in the 3rd quarter.
I know it's not worth a whole lot right now, but don't forget that they said they are getting 1.2 mmcfd. Think about it, that was actually worth something a few years ago...
I would like to have 301 pbd on my property; doesn't sound so bad to me. Do hope they use a part of their reallocated capital budget for more rigs--one rig on 540,000 acreas is going to take a while, even with one more possibly on the way in the third quarter.
300 BOPD per well is not sufficient to sustain a horizontal play. The well payout would be longer than the industry will accept. Particularly with an unknown EUR per well. Something north of 600 BOPD may be enough depending on well cost. SWN has invested too much to stop now and they are gaining experience with each new well. Another rig would be most welcome however with the majority of Brown Dense leases being 4/4 terms SWN has a lot of built in wiggle room for future considerations. The third quarter is less than sixty days away. I expect that we will see an increase in unit applications before this month is out.
Skip, there is not sufficient information to determine the economic viability of this type well. Remember the associated gas is likely high in gross heating value and NGL content which adds gross revenue. There are other oil plays with similar production rates.
Maybe some condensate in the oil with it 52 API.
Ed, I agree. It is hard to tell if this is a "gassy" oil or "oily" gas well with the fluid gravity and a GOR above 5600.