Ann: Second Well Intersects Mississippian Formati, page-9

re: Ann: Second Well Intersects Mississippian... vertical wells are going to have a much lower IP than horizontals but the decline rate is typically much lower also.

Vertical wells may well be very economic, in terms of rate of return, but don't have the high IP that investors love.

Based on the fact that Austex has limited capital, they may end up drilling more vertical wells and use the cashflow to fund more drilling until they have sufficient cashflow to take a chance on the more expensive horizontals.