returns on horizontals & verticals in pb, page-22

A good read courtesy of Jusik on the MPO thread.

APRIL 2012 HART ENERGY REPORT:HORIZONTAL WOLFCAMP 1.1MB DOWNLOAD?

Definitely gives credence to your post acreage. Quotes such as:

Growing expectations

To hear operators talk about it, Wolfcamp geology in this part of the Midland Basin is just about perfect for an oil-shale wish list: high in total organic content; filled with silica and therefore brittle; having good porosity and natural fractures; and in the optimal thermal maturity window to produce oil. “It is the ideal package when it comes to fracability and productivity,” says Tim Dove, president and chief operating officer for Pioneer Natural Resources. Adds Haas, “It has the right combination of key ingredients.”

To fan the excitement, positive well results are trending northward into the basin, opening speculation as to the potential areal breadth of the play. Haas says current activity confirms economic results in Crockett, Irion, Reagan and Upton counties. Permitting data suggest results should be forthcoming from Glasscock and Schleicher counties. Counties to watch: Sterling, Midland, Martin, Dawson, Howard and Borden.

I have little doubt that we are sitting on viable lease holdings, GGP just need to nail the drills. Given limited cash I'm happy that they're taking their time to assess it properly.

Back to bed now :)