Not clear as to the connection between salt domes at MAD and shales at Eagle Ford but took a look Sugarloaf and it seems that production is around 230 boepd per production well. Have to correct for gas prices so probably <200 bopd per production well.
I recall that Eagle Ford horizontal wells cost around $6 - $8 million whereas MAD vertical wells cost around $300,000 with a workover budget of $150,000 per well.
The profitability of production from the Eagle Ford shales is an intriguing question as a company such as AUT focussed in these shales just keeps borrowing money.
Probably the task of growing from a small contract driller to a production company overstretched the initial management team but the new team of Yeager and Milliren will deliver.
Best not to be short for too long.
FDM Price at posting:
51.0¢ Sentiment: Hold Disclosure: Held
