basic reason, page-16

One thing I just cannot understand

I believe GGP set out witha plan to drill 110 wells in it's 8000 plus acreage in the Permian Basin, which is a very ambitious target for a small oil company

5 wells are in some stage of production and have been for some months now, but flow rates are still an unknown

My question is why diversify and start buying in with 5 and 10 percent wells elsewhere

My brain says why not get your first tranche of wells productive,decent revenue flowing, along with the oil, start a second and third stage with the revenues and then when the cash is available look at the 5 and 10 percenters,if need be

At the current rate a 110 well programme is going to take a mighty long time

Ok, so I am no engineering expert and I know that all this talk of fraccing. horizontals etc, mostly baffles me,but why not proceed with your first stage planning and then take a look at the other possibilities

Sensible comments please