shakeout & what we have to look forward to, page-34

Hi Jock

Great find and some good numbers, we are in the oil window so one would expect a higher oil ratio.

You hit the nail on the head regarding those windows and why it makes it hard getting accurate flow rates from the larger Companies, they often operate in all windows and it can become the average for the whole EFS.

I'm tending to move away from IP rates and working more on trying to establish a likely 1 and 2 year total production average and based on $80 oil + Gas. Close to 25% of the expected EUR will be produced in the first year maybe 30-35% by the second year.( I'm talking Permian here)

Its really important IMO to have these wells paying off within that 2 year period , most of the wells being drilled now are in new ground and there is not a lot of history beyond two or three years.

The price of oil and gas of course are the overiding factor
and its important to get the most efficient extraction from these intervals as it means can operate in a lower oil price enviroment but rake it in when the price is high.

Thats where I feel we are at the moment with our Permian land SG has chosen to go with Hories probably because they are more efficient and the longer laterals are getting even more so. Now to find a way to pay for them.

Cheers Whisky