Ann: Rangers Well Pad Completed Operations Underway, page-73

Hi @alexei ii

They wanted SHE to participate in the drilling of the initial wells in the 3 DSU's, but after that, any
further drilling they were fund themselves to their WI interest level. SHE decided not to participate in Rangers and will almost certainly not be invited to participate in drilling Flames

Drilling the additional wells in Jewell is not a priority until after the initial wells in the other 2 DSU's have been drilled and put on production.

IMO what will happen after those wells have been drilled is BRK will sell part or all of the Woodford reserves as they will be then HBP ( Held By Production) . BRK will then use that cash to drill the Sycamore development wells in the 3 DSU's, another 3-4 wells on a 100% basis to their WI levels in each DSU


They don't need to focus on Jewell as such because all their SWISH acreage, plus the new acres they will accumulate will analogous in quality and productivity to Jewell. These shale/ limestone/ chalk plays are huge continuous areas, with minor variations in geology due to location and depth. BRK have chosen to play in the zone that produces rich gas and oil, the sweet spot, and they have found the sweet spot within that sweet spot. Pretty well the whole SWISH AOI is the sweet spot. David and Gracjan during the Spark interview mentioned the recent unannounced results by offset wells near Rangers are mouth watering. IMO with Rangers being slightly deeper, and a longer lateral, all things being equal, we could be looking at a better well than Jewell.

So they should sell their PUD reserves, namely the Woodford to acquire much more acreage within that sweet spot ( which as a BRK home grown concept) an area they know better than anyone else, to propel the company to much greater heights.

The sale of the Woodford should bring enough cash to fund the US$30-40 million spend on the Sycamore wells, leave a significant pile to distribute to shareholders via a capital return, ( ~1 -1.5 cent per share) and leave significant cash in the company for future operation. Adding to that cash pile will be material cashflow from the 6-7 total Sycamore wells which will allow BRK to fund further SWISH and or other tier 1 acreage along the oil/wet gas margin of the Anadrako basin, and the initial well within each DSU without going to the market for capital. The aim being to accumulate enough acreage to pool 10+ DSU's to repeat what they had done by a factor of 3- 5+.

That is the grand plan IMO

Hope that helps

Cheers

Dan