project update out!, page-69

I'm with whisky regarding why our 3rd and 4th well will be flowing minimal numbers till the cline gets fracced.

Keep in mind that the Cline was what effectively changed the nature of the PB drilling campaign which was evident in the first 2 wells and reinforced even more with the flow rates from the last 2 which have the cline isolated (not 100% sure about the 3rd well).

Been looking at Pioneer's announcements and what I've been finding is that the data and techniques with horizontal fracturing is getting better by every well they've been doing.

I bet SG is waiting on to see what EF throws up in terms of flow rates to see the economy of scale of horizontal vs vertical. even if we get an initial let's say for arguements sake 50boed declining to an average of 20boed for our 10% (roughly 1 million) it still would be more effective than our $3.5m/vertical which we're hoping for an 100boed peak 40boed avg, keep in mind the massive upside potential which the cline holds which can be magnified even more through horizontal drilling.

These additional 10% working interest are a great way SG is getting more oil and gas for minimal expenditure not to mention the freedom of NOT BEING BURDONED as an operator.

With PB drilling suspended we still should see rising production. Sugar Valley comes online in 2 weeks, EF should be a few weeks thereafter (a biggie as it should give an indication first hand on our first hori).