Pen, very good observation about using cheap verticals for HBP. Don't know why this isn't standard practice, except maybe that drilling an expensive horizontal is just short term debt risk with long long superior returns.
And Dis, very good comments on risk of doing horizontals in the Miss Lime. I think you've stated this nicely.
Some refer to SEA, which I have held for 2 years (bought when no one wanted it). But SEA in Anadarko (Mississippian) are now all horizontals (see Jan14 Qrtly). They initially did verticals in Niobara I think because it has several predictable vertical layers (maybe also as exploratory wells). But now they are doing horizontals there and one slide refers to "Upside" of the horizontal program (vs verticals). Again, verticals likely make sense in some scenarios, but the shift to horizontals is apparent even where verticals were the norm just three years ago.
Regarding SEA, I have thought more than once that SEA should take over RFE and raise the performance (and trust in mgt) standards. But I'm not convinced that RFE is a dead stock at all (neither does Perpetual)...just painful at the moment.
RFE Price at posting:
17.0¢ Sentiment: None Disclosure: Held
