LOTM,I think a minimum amount of drilling on both northern star...

LOTM,

I think a minimum amount of drilling on both northern star and big star is appropriate at this time.

Competitors wells in and around northern star during 2012 will assist in de-risking this play.

I will be very interested to see how far away the horozontal cline shale action is from big star.I noticed another major had a decent slice of acreage in the south eastern corner of Borden county.

Most of the horozontal wolfcamp drilling is in upton,regan,iron crockett counties.Shallower verticle depths there and some very thick pay with up to 5 possible horizons in the wolfcamp(some areas).

There are several small w/i holders in southern star.What was previously a good earner for them has suddenly become very capital intensive with 24 wells planned.They will have to fork out a significant amount of cash before much comes back in.No larger entity would be interested in these stakes and any smaller players may have similar cash flow issues.
I dont believe for these reasons antares paid top dollar and there maybe further smaller w/i sellers in southern star.

With production remaining relatively flat for the start of year and no new producers having come online,the remediation of older wells must be working.

I dont think there is any need to rush into any horozontal wells.By the end of 2012 plenty of these wells will have been drilled in the midland basin.

I think BHP will be keen to de-risk their petrohawk permian acreages in search of oil and liquid hydrocarbons.

We have a large acreage position(increasing),and we should concentrate on southern star increasing production(as well as P1,P2 reserves) and let our competitors de-risk the rest.

Whilst some areas within the company maybe frustrating the midland basin within the greater permian basin is a good place to be at the moment,esp with greater than 30000 net acres.

All the best.