This spectacular result has caught my eye in the news feeds...

This spectacular result has caught my eye in the news feeds today.  I hate to be the one who gives the negative position here but has anyone worked out:

1. What's the decline rate on these wells (see American Oil and Gas Reporter - Decline Rates).  There's an IP24 (presumably 24 days and not 24 hours) of 5400 BOEPD and at IP(30) the rate is 4200 BOEPD (drop of 1200 BOEPD in 6 days).  The test will be what the production and average IP is for the first 90 days.
2. This is producing 15% oil (not sure if part of this is condensate as opposed to oil).  The remaining 85% is gas which is converted at 6 MMBTU/Bbl.  But the $ equivalent is more like 22x (WTI $66/Bbl and Henry hub $2.95/MMBTU).  So the $ return from the well needs  to be compared with caution when looking at the payback.
3.  This is a 2% Working interest but what is the new revenue interest because that is what BRK will receive.  This may be provided in other announcements/reports (it should be or else there is no real picture here).  The royalty is typically 15-20% and this can be a big number when looking at the economics.
4.  Even though the WI is only 2%, BRK will still have to keep stumping up their share of the capex on the well drilling program and the operator is not going to worry about whether they have their share of the capital ready to contribute when they are planning their drilling program.  So even with a stong cash flow (potentially), cash is very critical here (again, I have not done enough research to understand BRK's capacity here, it's just a critical issue in assessing ongoing value).

I hope BRK are onto a winner here but these points should be considered.  An 18 month payback is pretty good but these are big wells.