It looks to me like another classic example of portfolio...

It looks to me like another classic example of portfolio management.

Gather up as much cheap acreage as you can.

Farm out all you can - Bow, Avery, Santos, ITC and now MHL and retain as much % as the market will bear.

If a farmout makes a hit Ventura/Mirage, Cuisinier, Growler then start paying your own share and in most cases retain opperatorship and move along the program

If an area fail or does not perform well in production - attempt to farm it out again.

This focuses available drilling funds on the very best targets but still gets other wells drilled.

What companies (and shareholders) must not dwell on is if a farminee comes in and makes a big hit. You can only judge a deal by the information at the time and companies who are afraid to farmout (some big end of towners spring to mind) because they might give up a big strike are not using their portfolio to its potential. If you do not have the money/will to drill a prospect - farm it.