Ann: Rabalais 35 No.1 Well Update , page-15

hmm shocked by R-35, read it completely wrongly, is all I can say.

These wells are always going to have high initial decline rates, they are after all in the Austin Chalk, however below it are the Eagleford and the Tuscaloosa shale, so there maybe additional upside in them.

I think they will drill / complete the next well completely differently than before, they will most likely use the Anadarko type method. I think investors will give them one more shot at getting it right.

Looks like this play covers a much smaller area than originally thought, only covers a few miles north to south and within that part of it is mainly gas bearing.

I still think a lot of there lease will be productive, but this news is still surprising to me, pity they didin't share the initial results with us just to see how bad the figures really were. I'm sure Anadarko will be reassing their lease position in the area to, as that results puts about 50% of their leases in the non comercial area.

So not a good result all round, the quicker they can drill another well the better.

LOTM