HiFrosty I think you summed up the current situation well. The...

HiFrosty
I think you summed up the current situation well.
The Horizontals are going to be very interesting, to the best of my knowledge they only frac the horizontal stage and not any of the vertical. So in that respect its all or nothing but if they can drill and frac in some of the better zones they are finding they could be very good.
I would imagine they will be learning a lot from the verticals.
I see Pioneer drilled a Wolfcamp horizontal in upton county
it had a 24hr IP rate of 854 boepd restricted estimated 1200 boepd unrestricted.A 5800ft lateral and a 30 stage frac.
I think we have a shorter lateral and less stages but it gives an indication.
On adifferent note I would like to see them push the drilling program out a month or put the first horizontal at a later date. With the promise shown in the early wells I believe we could be in a position to self fund with the help of finance by the end of jan avoiding a cash raise.
If the first well IPs at 400 or better which is looking likely it will have produced around 21000 boe by the end of jan. With the second well coming on stream end dec and showing similar promise we could add another 12000 boe thats a gross $3.3 million and with two more wells coming on stream towards the end of Jan if fraccings crews turn up.
A lot of ifs,buts and coulds involved here and the drilling rig dates may be locked in. Im sure this will be in minds of management and will be interesting to watch play out.
Cheers whisky