As far as bringing costs down over time, it's important to taken...

As far as bringing costs down over time, it's important to taken into acount how such a play works.

They are a MULTI WELL operation and herein lies the clue. As thevoperator completes each well it adds to the production output of bbls/day. Obviously as this takes place the production output rapidly increases depending on the number of rigs drilling and the completion rate and success/efficiency of each horizontal well.

As one can appreciate this can all happen pretty quickly if the operator has enough rigs and frack units.

One can add to this the continual fine tuning if the fracking for each well.

The base line cost per well will be set by the flow rate, which is determined by the reservoir over pressure and permeability and the ability of the frack units to maintain these factors usually with proppants and various chemical types.

As we probably all know from shale oil well output graphs, each can vary considerably BUT if on the Sweetspot these rates can be incredibly impressive and adjusted for over the whole play by simply increasing or decreasing well numbers.

Don't think I nenes expand on this to show how these guys increase efficiencies and therefore drive costs down.

As Dave said as long as they can get these wells PERFORMING they will drive down costs per bbl and with that I leave you all to contemplate the POTENTIAL returns to be made on
Much lower cost per bbl with such a large potential play