BRK luncheon, page-9

That depends on the structure.

Incoming party could fund the majority of the drilling for a position in the DSU .

It could be a farmin where BRK are free carried for the drill program.

Remember, for the Jewell well, SHE paid for ~40% of the well to receive 40% of the revenue from that well.

If BRK were to go down the JV or Farmin route, multiple wells would be funded and there almost certainly some sort of carry in terms of a farmin, or a prior costs recoupment for BRK's costs in leasing, legals, facility builds etc etc. It would be unlikely BRK would have to stump up much, or any cash, but would have a lower equity it the wells being drilled.

David didn't say they are now preferencing a JV or farmin over a sale, that is still the main option. But with what CLR are doing immediately south of Flames in the multiwell pad development, the results may show that developing both Sycamore/ Woodford zones in a " wine rack" system in a batch drill/ batch completion manner provides returns just as good, or even better than an outright sale.

I would argue having drilling reserves for cashflow in a JV / farmin (where BRK didn't need to put any cash , or very little on a net basis) as an option that is as attractive as outright sale is a positive, rather than negative development for BRK.