geezer's on fire, page-9

I think the Average in Texas is about 40% decline in the first 6 months, then a further 20% in the next 6 months and a generally slower decline rate after that. So pretty steep.

Some other points of interest:

- Something like 15% of the all Austin Chalk Wells have produced 50% of the flows, so the fracture system is key to how long and how strong the flow is (think I remember reading this in a Burleson presentation from a while back, so details could be a bit hazy!)

- DesHotels could still have a flow rate of about 1000bpd (of which PYM has 30% NRI) in 12months time, which is double PYMs current production, but not as spectacular as the initial rate.

- Depending on where they drilled the current well, it is also possible they might want to drill another horizontal leg off the existing verical to hit another system of fractures in the opposite direction to the current horizontal. This could be particularly useful when the production rate declines.

- The wilcox sands higher up in the geological profile might provide a smaller but more stable contribution of oil and gas flow.

- PYM and JV partners should be able to recycle their capital into the next drill fairly quickly once they get going. So, conceivably they could drill 3-4 consecutive wells in the next 12 months or so if they have no major problems and that would definitely transform PYM from the minnow they are into a tastier looking fish!

Plenty of mights and maybes....

Cheers,
turtle