hi delta. from what i have gathered, vertical drilling into...

hi delta. from what i have gathered, vertical drilling into Canyon Sands is just a low risk cheap entry, 100bopd would probably be considered a win and the point of the campaign is probably to be seen drilling successfully while they wait for other larger companies to test out some horizontal wells in the Cline Shale.

So if they knock out two or three cheapies that are producing modestly, but in the meantime someone like Devon manages to unlock something more glamorous (up to 700bopd expected from the Cline Shale), then it will be a heck of alot easier for them to raise enough funds to try a horizontal well, as the market will probably go a little bit crazy on speculation.

The problem with the Cline Shale is it would cost nearly $7m a well, so the company is obviously capped to low to even bother trying to raise funds for that sort of high risk high reward play. But if they had one or two producing wells at around 100bopd and the nearest neighbours well pulling 500bopd out of one well, you'd think the market would be happy to pump the shareprice back up to at least $30-40m and allow them a shot at a middleweight title.