SL, sold and then very quickly backin, my rant the other day was more out of frustration than anything else.
I agree with some of the positives from the presentation.
However, one thing that really concerns me is the change in strategy for the Niobrara 1 & 2, Management tell us that due to the significant results from the vertical of Niobrara 1 they have decided to immediately drill N2 as a horizontal, to fraac and complete, they say this will be done while they engineer the Horizontal section of N1, which should take 20 days, and then they would complete N1 as a horizontal. They say that this will save money as the rig can be kept on site working, and slid between sites rather than being taken down.
they also state that this is in line with "the companys completion policy which allows for 100 days to complete the wells and put them on to production"
Surely by putting off the completion of the N2 Horizontal they are breaking there own "POLICY". They are also abondoning the idea of saving money as the Drill rig won't stay on site until half way through next year.
Surely if the results were that good they would have carried on full steam ahead.
Any thoughts?
AKK Price at posting:
2.8¢ Sentiment: Hold Disclosure: Held
