Ann: Otto Farms in to Eight Well Gulf Coast Package with Hilcorp, page-25

I am not sure why the liquids % on the same prospects increases from P90 to P 10 ?
Can anyone enlighten ?
They must think that the more the structure is full the greater the chance of oil or higher gas liquids ?

Gas has a low price in the US but that has only been the case since the Shale drilling revolution .
Lots of associated gas with shale oil that has had to find a market .
Gas price should rise and get closer to International prices when the LNG plants come online .
At this time dry gas is only about a quarter the price of oil on an energy equivalent basis .
At least all the gas plays are for wet gas which greatly enhances their value .

BV really stands out as a game changer .
Could be a burster in the future if a success and gas prices were to rise .

We are in for a very exciting ride for at least the next couple of years .
Sure to be a roller coaster .They have really rolled the dice .Whoo , a new well about every 7 weeks on average , at times several running at the same time !

Hope they have success early in the program .
I wonder how they will handle financing the development of discoveries ?
It seems to me that they probably only have the money for the drilling at the moment .
Some debt would seem to me to be appropriate due to the relatively short time to first income for these plays and the income from SM71 .

I like the company DNA , they are doing exactly what they said they would do .
Not being an operator does give them a lot of flexibility .

gltah