pretty happy with yesterdays ann.I agree with others that SG and his small team are setting a very strong foundation even if it means SH's are not getting the expected production news for now,I am sure we will be rewarded in the near future with very positive news.
Been doing a little more research on the ever changing targets of our current and future drills.In particular the Cline and Strawn intervals.
Firstly let me say that after doing some reading on these two plays and,other possible intervals like the Atoka,I will not be surprised if in the future we will have some hiccups along the way because the plays like the Strawn and Cline are still being worked out by others.The Wolfcamp horizontal is the consistant performer for now but even it hasn't been perfected.Companies are drilling their VERTICALS to the deeper zones now and from all reports I have read are still finding inconsistant numbers so our hori's into the zones if SG chooses to do so are going to be up and down.One thing in our favour will be the 3D seismic we are going to be involved in soon.
The data below has all been corolated in Jan 2012 so is up to date.
The longer the laterals the bigger the production numbers and of course the pay.This is pretty much as it is in other plays eg Bakken.Fine tuning with issues like, fracking sands,propants,pressures etc can and do make a difference to EUR's and bottom lines.
With the price of oil increasing and looking like continuing into the future,the PB is only going to get busier as margins become greater.This is great news for GGP but does bring associated problems for all players.Infrustructure demands become very tight and accessability to pipelines,transport,drilling units,fracking tech,accomodation etc etc.This in turn will add to costs as the demand outgrows supply.A problem I am happy to put up with if it means the POO keeps appreciating.
GGP Price at posting:
2.3¢ Sentiment: Buy Disclosure: Held
