Afternoon all,two well thought out posts thankyou. Although a...

Afternoon all,

two well thought out posts thankyou.

Although a minor change our monthly income is up $70,000 which was a big plus in my eyes,covering our way now so we are at least heading in the right direction.cmonaussie i agree we need a plan showing our direction.We know our assets are good and as i mentioned previously its a matter of how SG can best use them.Costs on verticles range from $1.2mill - $2 mill that I know of,which matches up with your statement.

Sorry to throw in another coy's results on this thread but I thought their results are outstanding.

Apache have just released their 2nd quarter results and they have some excellent returns from their verticles but from a very deep interval.Glasscock county is directly north of Reagan and Irion next door to the east.

In the Permian, we reached a company milestone in the second quarter with production surpassing 100,000 barrels of oil equivalent per day marker for the full 3-month period. During the second quarter of 2012, net production was up 5.3% over the previous quarter at 104,500 barrels of oil equivalent per day, of which 72% was liquid and more than 3/4 of that was crude oil. Also included in total volumes are nearly 2,000 barrels of oil equivalent per day, of positive prior period adjustments, the majority of which are attributed to non-operated fields.

Drilling at Deadwood in the Midland Basin and the Glasscock County continues to be a large contributor to growth, with horizontal drilling in the Wolfcamp emerging as a new development area. For the quarter, Permian averaged 32 drilling rigs, up 4 from the previous quarter, on the base properties, adding 187 wells, of which 167 were vertical and 20 were horizontal. We are currently running 36 rigs. Other than 2 weeks of working inventory, we have almost no backlog of stimulation jobs.

In the Deadwood vertical play, we are targeting Wolfwood, that is the Wolfwood through the Wolfcamp reservoirs, and Fusselman vertical wells. We've had several notable test results with wells flowing in excess of 300 to 400 barrels of oil per day for intervals covering the Wolfwood reservoirs. We also have a number of locations where we'll initially complete only the deeper Fusselman formation and recompleted later at Wolfwood formations at hole [ph].

Our Amberjack well is a Fusselman-only completion and tested at a rate of 285 barrels of oil per day plus 180 Mcf per day. These add volumes at a very low cost, boosting the well's EUR and rate of return. We estimate that 1 out of 5 Deadwood wells can produce from the Fusselman. We're currently drilling primarily in 40-acre spacing at Deadwood, testing some 20 for down-spacing. This program is expected to remain active through 2012, drilling more than 300 wells in the second half of the year.

In our Wolfcamp Shale play in Irion County, our 4 Wolfcamp horizontals have produced more than 190,000 barrels of oil equivalent since March 19. These are outstanding wells, all upper Wolfcamp producers, nothing in the liminal [ph] zones. This appears to be a very thick, very brittle shale and breaks nicely with fracture stimulation. We currently have 3 rigs running in the play and have already drilled 5 additional wells, which are currently being completed or expected to be completed soon.