re: Ann: Eagle Ford Shale-Sugarkane Operation... What another...

re: Ann: Eagle Ford Shale-Sugarkane Operation... What another ripper of an announcment. The OGR's (oil to gas ratio's) the excelsior AMI is achieving is are very remarkable, and the declines are very modest as well. They have also identified a "sweet spot" within the AMI, as the EFS is deeper in this part.

I have summerised the OGR's below -

30 Day OGR's > (bbl/mmscf)

Hierholzer Retzloff 1H - 1,437
Hierholzer Seewald 1H - 1,221
Chapman Rothe 1H - 1,115
Chapman Pfiel 1H - 1,237
Henke A Excelsior - 1,183
Henke B Excelsior - 772

60 Day OGR's > (bbl/mmscf)

Hierholzer Retzloff 1H - 934
Hierholzer Seewald 1H - 1,019
Chapman Rothe 1H - 634
Chapman Pfiel 1H - 753
Henke A Excelsior - 880
Henke B Excelsior - 363

Wells with higher liquid yield's will have higher NPV's but lower EUR's, as they have lower gas drive.

Here are the 30 to 60 day declines for the excelsior wells - (%)

Hierholzer Retzloff 1H > -.8%
Hierholzer Seewald 1H > -.7%
Chapman Rothe 1H > -8.4%
Chapman Pfiel 1H > -8%
Henke A Excelsior > -22%
Henke B Excelsior > +1.5%

Henke B actually increased gas production.