Ann: Operations Update, page-309

db09striker,

the significance of the trace hydrocarbons in the upper zone flowback is a relatively easy one...

1 - basically Dave is saying that when they were only flowing back the Upper Zone, they got back about 8% fracc fluids and saw Traces of Hydrocarbons...
(Note: in the end it is after about 30% fracc fluid recovery that they expect to see the hydrocarbons properly and not just traces of it... this is probably relevant for all the zones)
2 - after seeing the pressure and whatnot that was not expected from Upper Zone flowback, they made a conclusion that the Upper and Lower Zone must be in communication, ie; connected via the fractured framework within...
3 - after pulling the plug (or drilling it out) and allowing both Zones to flow back at the same time, they then saw that they were having 100% fracc fluid coming back (ie; no more trace hydrocarbons), meaning that they were sure that the issues with the pressure and whatnot was actually due to the communication between the two zones...
-so effectively within the Upper Zone, it was starting to get the hydrocarbons, albeit only traces, while they recovered about 8% fracc fluid... but for the entire section covering all zones, they think they will have the full-on proper hydrocarbon flow (and not just traces), coming out when they have recovered about 30% of the overall fracc fluid from everything that was pumped down...

so to some degree, seeing that the total of recovered fracc fluid is about 13%, possibly once they get past 15 or 16%, the traces of hydrocarbons will emerge, and then increase to an almost reportable amount at the point that they have recovered at least about 30% of that fracc juice...

that is how i have understood it, and that is why i think (like many other long-termers) that there was absolutely NO issue with the announcement... ))

marketmakersand their employers (finance houses ??) also need to be kept happy, and this will only happen via volatility... so if that is what has to occur while we get to the end game... so be it ))