Hi Invertedva, They certainly won't be shale wells, I don't know...

Hi Invertedva,

They certainly won't be shale wells, I don't know of any shale wells that have that type of decline curve profile and someone has to sign off on the data being reason & accurate in there judgement. The bank will have to look at the numbers to and accept them and they tend to be conservative with such things.

The seller most likely has a far better place to park there money and get a far higher rate of return on it going forward. The best companies are the ones who can get there money to work hardest for them, ie get payback as quick as possible so that the capital can be re-invested in the next project to again generate future revenue.as soon as possible. So yes you could say they are in effect bringing cashflow forward, I would disagree about your risk thoughts thou.

LOTM