what's next, page-23

Hi SB, OPM,

I'll answer OPM's question first. No target in mind. I've found that it is much better in these shale plays to look closely at the company's asset (the actual acreage), its peer group, capital adequacy and mgmt - not necessarily in that order.

If I would invest in CEL it would be longer term (i.e. post TC Gas sales).

This is why I've found myself having to do more homework on CEL - actually liked it more without MS project. One thing on TC, although we are talking Ellenburger results do vary (considerably). That would be like saying all EFS acreage is equal. I've found it challenging to finds Edwards Country production other than what I posted earlier.

As far as the Barnett goes - heaps of info. I'm posting the peer info as I think its really important and we can learn from it. CRZO not a bad one to compare to - I would encourage you to vist their investor relations page.

What I did was look at their acreage before and after the sale to KKR Energy. Before they had 45K acres and after they have 32K acres. Spoecifically CRZO also state

"The approximately 13,000 acres being sold include 75 gross (58.5 net) wells currently producing at an approximate gross rate of 15.7 MMcfe per day (8.3 MMcfed net). Estimated proved reserves associated with the divested properties amount to 122.4 Bcfe, 55% of which are proved undeveloped, as determined by Carrizo's third party engineers at year-end 2010they sold " which they note is substantially all of their Tier 1 acreage

This preso is before they sold the acreage
http://www.crzo.net/uploads/4-12-2011%20IPAA%20New%20York.pdf

Look closely at slides 11-15.

That is why I would really like to know where this Mercury-Stetson acreage is - Core/Tier-1/Tier-2.

SB - ask Paul that specifically - he should know what you are asking.

In a nutshell, KKR bought Tier 1 acreage (13K) with avg EUR/well of 1.8Bcf, drill cost of $2.1M per well and $1.54 per Mcfe of F&D costs.

In the CEL preso if I compare I would have to guess that acreage is in South Denton County - much better there than Tier 1 or 2.