Looking through a recent devon presentation it sheds some light...

Looking through a recent devon presentation it sheds some light on the mississippi lime formation around us.

What is the most exciting thing is Devon say that the woodford is the source rock for the mississippian formation (a bit like the eagle ford shale is the source rock for the austin chalk) meaning the woodford could add significant reserves and value in the coming years as/if it is proved up. The most promising thing is, Devon claim that the TOC (total organic carbon) is ~%10 meaning that it is most likely the woodford reservoir will be commercial in this area.

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Natural fracturing evident. Better flow rates and declines.

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What is interesting is Devon quote their Un-risked reserves at -

56 mmboe or 560,000,000 boe with net acres of 153,000

So using a EUR of 350,000 boe per well it looks as though Devon are using well spacing's of ~ 96 acres.

560,000,000 (reserves) / 350,000 (EUR) = 1600 wells

153,000 (net acres) / 1600 (wells) = 95.625 acre spacing's

Or ~ 7 wells per section

This is a big difference to the current guidance RFE is currently giving - 3 wells per section. So massive scope for improving reserves just on well down spacing.

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Other things worth noting -

- 40 degree API sweet crude, most valuable to the refiners.

- Mississippi reservoir very think - 100' - 300'

- Healed fractures reopened by frac job.