Except that most of the production is gas which sells at a much lower rate. You also probably have an overriding royaly to pay at 25% to the land owner and then you get a nice sharp decline.
Of course it is economic to put this on production. You have already spent all the money drilling the well and you can't get that back. You may as well let it flow and see what you get.
The big question is the next well economic to drill?
Have a look at MPO who have similar flow rates (in the permian basin though) and they are looking hard at stopping drilling as there is no money to be made with rates at this level where production is mainly gas.
AKK Price at posting:
2.8¢ Sentiment: None Disclosure: Not Held
