why the silence?, page-25

(Sorry I didn't know the image was that large. My bad.)



Here's something I stumbled across last night when I googled to see if there was some news on QEP and the Bakken deal.

http://seekingalpha.com/article/836331-qep-resources-management-shares-bakken-m-a-insights

Very good QEP Management quotes:

"One of the things that is absolutely important here,.. acreage math alone does not drive the value of the transaction or the scope and scale of the operation. Because... these resource plays have vast quantities of acreage that are on the fringes of the play that yield marginal wells. Even with good operators drilling low cost wells it is tough to overcome marginal rock. So having a nice chunky core acreage positions in one of the highest EUR parts of the basin allows us to have kind of scale we are looking for, which is profitable scale, not just having thousands and thousands of acres in the marginal part of the basin."

I could not have said that statement in bold any better myself. Quality is so much more important than Quantity. Range are very confident in 50 acre Mississippian spacings. Take a 2,000 acre block for example, that could yield 40 horizontals in the Mississippian alone if Range's forecasted spacings play out (excluding the Woodford and other horizons).

I'm very excited about the very high quality results in Logan County so far, having said that SEA definitely has alot of quantity there as well!