DJ yes a cheeky bid could be at 10c but I think it would be less than that our land has to be proved up first.
A lot of people would sell at 4-6 cents a 100-200% gain would be hard to resist
This was going on the other thread but its been TOUd so will put it here
Hories will be drilled whenever it works out to have the best economics and/or if its the only practical way to drill a particular area but there will likely be plenty of verticals drilled. In the end its finding the best way to get the most oil out of a given area.
Pioneers spending 60% of its butget on verticals this year its only just started on Hories
I mentioned somewhere yesterday that they are now weaving Hories around vertical wells and fraccing the reserves between.
The Wolfcamp in our acreage is up to 1200Ft thick thats a lot of shale.
Just some light reading to get you in the mood.
"New life for idle acres Dallas-based Pioneer Natural Resources is the monster of the midway with a 900,000-acre footprint down the axis of the Midland Basin. Here the company is in full development mode manufacturing vertical Spraberry wells, ofgo. The full power of its capex is deployed here at $1.5 billion for vertical wells, 60% of its total expenditure. So the company deems the revelation of the commerciality of the horizontal Wolfcamp play on some 200,000 idle acres on the southern end of its holdings in Upton, Reagan and Irion counties to be pure upside—with extreme potential. “It became clear there was a burgeoning new play down there,” says Dove. Seeing offset operators testing the play a bit further south, he acknowledges, “The well results were quite excellent.” Here, where the Spraberry sands thin and are less economically viable, old shallow production has held most of this acreage in Pioneer’s portfolio for decades. A drilling rig was a distant memory to mineral holders. But with 50,000 acres picked up in a university lease sale five years past now exposed to expiration, Pioneer jumped into action. Awakened to the potential, this is where the operator is concentrating its efforts over the next two years. “We want to make sure to preserve the value of those leases,” Dove emphasizes. Why the urgency now? Based on his unique perspective, the horizontal Wolfcamp “could become one of the most significant plays based on our current understanding of it.” Dove even goes as far as putting the “game-changer” tag on the play. With thousands of cores, log data and petrophysics from its massive vertical campaign in Pioneer’s databank, Dove suggests a minimum of 400,000 company acres are prospective for commercial production from the play, and he would not be surprised if the entire 900,000 prove productive over time. The play is immense, he declares. “The areal extent of this and the productivity potential measured in oil in place is so large that it’s going to be one of the truly burgeoning shale plays in the U.S.” And it’s oil, which, in a $100-per-barrel oil environment, is meaningful, he says. In third-quarter 2011, the company drilled its first horizontal well, located in Upton County, with a 5,800-foot lateral and 30 stages 200 feet apart. It produced 854 BOE on a 24-hour restricted rate and averaged 643 BOE over 30 days. Pioneer’s second well, also in Upton County and with a 5,800-foot lateral, mirrored the first: 807 BOE per day IP (75% oil, 18% natural gas liquids, 8% gas) and an average 30- day rate of 677 BOE per day. Both wells were completed pumping 220,000 pounds of sand and 300,000 gallons of slickwater fluids per stage. “They are exceeding our expectations,” he says. These wells—60 miles northwest of most inspin-ustry activity and the first horizontal Wolfcamp test wells in Upton County—derisk the play northward. The company is landing the lateral in the upper zone of the middle Wolfcamp, just below the Tippet shale that divides the middle and upper Wolfcamp members. Microseismic confirms the fracture stimulation is reaching the full 400 feet of thickness above and below the wellbore of each Wolfcamp zone for 800 feet of effective stimulation. The next two wells in Reagan County to the east will be drilled with 7,000-foot laterals and 35 stages, each 200 feet apart. Beyond extending lateral lengths, Dove says the company is not experimenting with completions so as to better understand predictability. “We’ll do that after establishing the productivity of the wells.” Pioneer projects ultimate recoveries from Wolfcamp horizontals in the range of 350,000 to 500,000 BOE, but the first two wells already look to exceed the average of those. “The first well has already made 45,000 barrels in the first 90 days,” notes Dove. “That’s a good sign.” Dove estimates the company has exposure to more than 1 billion barrels of net resource potential from the upper and middle Wolfcamp alone. That doesn’t consider potential in the lower Wolfcamp, nor the Strawn, Atoka, Jo- Mill or Mississippian intervals that could be viable horizontal targets. The horizontal Wolfcamp will be the fourth Texas-based growth play for Pioneer. Havingjust brought in a third rig for Wolfcamp, the company plans to have up to seven rigs running by year-end, going to 10 in 2013. That pace will result in up to 35 wells drilled this year, topping at 80 to 90 by year-end 2013 to successfully hold any expiring acreage. Its expected 2012 average production rate: 2,000 barrels per day. The $275 million budgeted this year, including a 260-square-mile, 3-D seismic program, represents just over 10% of Pioneer’s 2012 budget. “This horizontal Wolfcamp play will start taking a growing proportion,” Dove anticipates. At an average $6.5 million modeled per well, with 2,900 horizontal locations on 140- acre spacing, he projects $20 billion will be needed to develop just 400,000 acres."
Cheers Whisky
GGP Price at posting:
1.8¢ Sentiment: Hold Disclosure: Held