Agentm, You have made a comment on another forum that the edwards formation is not commercially viable after the recent frac in the francis dilworth 2 well and that this is very disappointing to investors.
You have also corrected me that pioneer are not drilling any more edwards wells only austin chalks and eagleford wells.
Your comments in my opinion point to the failure of the edwards limestone project at yellow rose.
The comments that should be made are that at approx $3.10 per thousand cubic feet of gas (the lowest price in approx 7 years)that the gas cannot be recovered economically at these prices.If the price of natural gas was double the current price I am confident that this nproject would have sound commercial implications.
If pioneer cant economically continue to develop edwards wells (and they have many years of experience) it is hardly surprising that they too are chasing the eagle ford.
As pioneers primary interest in south texas has been the edwards trend,the vast majority of their 310000 acres encompasses the edwards limestone trend.
They obviously believe that this acreage will produce commercial results in the eagle ford shale as well.
I hope my reasoning clarifies some issues.
All the best.
PS EOG have some very upbeat analysis about the increase in natural gas prices into early 2010 and their reasoning behind this.
AZZ Price at posting:
27.0¢ Sentiment: Buy Disclosure: Held
