"flow rates needed", page-8

Yes we will see but recent results don't bode well for an 800 boepd IP. And certainly not for a vertical -

This from Clayton Williams Energy, drilling in burleson county -

"Clayton Williams Energy Inc. (NASDAQ: CWEI) is making progress in the Eagle Ford shale play in Burleson County. The company’s second well is performing better than the first “weak performer” averaging 162 bopd in the first month. The company’s first well was completed with nine stages at a cost of $3.1 million at a shallow depth of 7,000 feet.

Based on typical decline curves for the play, first month volumes for the second well could double that of the first at 350 bopd. The well is to be completed with 13 stages at cost of $3.3 million.

The company is still working to determine whether the oil play is "economically viable". According to a report issued by Jefferies & Co. Inc., “at $75 realizations, first well unlikely to pay out in less than three years,” but the second well “has a much better chance.”

If the second well can be sustained on pump at 100 bopd, Jefferies expects the well could pay out in two years. A “reasonable threshold for development,” Jefferies continued. The first well is doing just 46 bopd on pump."

key points -

- The company is still working to determine whether the oil play is "economically viable"

- 1st well > averaged 162 bopd in the first month, was completed with nine frac stages and is producing just 46 bopd on pump.

- 2nd well > first month volumes for the second well could double that of the first at 350 bopd. The well is to be completed with 13 stages. If the second well can be sustained on pump at 100 bopd, Jefferies expects the well could pay out in two years. Again they are not sure.

"Personally I'm looking for something between 600-800 BOE."

This looks very optimistic possibly impossible. Something around 50-150 boepd for the vertical and 200-350 boepd from the horizontal is more realistic in light of hard production data.