Hi Agentm, Just clarifying about the Francis Dillworth 2H well report am I right in thinking that after 90 days production climbed then for three months before falling back over another 3 months to the 90 day level?
If this is so then the whole idea of decline curves are somewhat rubbery, I know for valuation/ modelling over long term still effective but first 90 days hmmm.
Ironic isn't it that AZZ shareholders only received a quarterly showing the 90 day results so in actual fact just when the well began to stabilize or improve the company sold it to Chesapeake.
Glad you posted that info as it was very informative the well has produced $5.749m in oil @90 and $1.065 in gas @ 7.20 ( the prices txn is getting atm) which would result in $5.11 million net royalties 25% and I believe AZZ claimed costs of $5 million so payback in 10 - 11 months.
I must admit to feeling annoyed at how there has been claims that the texon well is similar to this one. I looked up the quarterly from AZZ and it stated IP 790bopd + 900mcfd (865 boepd) which then fell to 387 boepd at 30 days compared to TXN well IP 1267 boepd which fell to 655 boepd on 30 days average. Unless I have completely misunderstood these numbers there is 268 more barrels per day ($24,120/day) being produced which if some posters would like to give me that and say it is only slightly different then I'd happily take their money.
cheers Icharus
TXN Price at posting:
66.5¢ Sentiment: Buy Disclosure: Held
