Yes Modric, you are quoting quite possibly the very best shale...

Yes Modric, you are quoting quite possibly the very best shale E&P company in the world in EOG.

If anyone can squeeze out performance they can - but this is not conventional O&G production. EOG has thought leadership in well design and completion strategy - and MHR aint no EOG.

But at least MHR do know what they are doing having successfully operated in the EFS (were NSE to go without MHR as 3rd party operator that would be a giant red flag).

Seems Anatol has also now discovered the meaning of proven, developed and undeveloped as it relates to acreage. Now to understand the Netback a company receives and how that relates to Cash Margin - point in case being EOG with approx $40/Boe cash margin (with 77% oil cut) and where they rail to LA to get LLS pricing (at a about an $8/bblo premium). And eventually one gets to the understanding of the EUR and IRR.

Look at what EOG is squeezing out of the Western EFS..

http://www.eogresources.com/investors/slides/EOG_1113.pdf

Slide 21 - shows a 30% improvement in 2013 over 2012 in cumulative oil production - looks to be now a IP150 of about 500bopd. And spud to TD in under 10 days - thats how you reduce your Cpaex and the F&D costs! Plus they have their own sand for fraccing...


Just issuing a note of caution when one compares to the industry leader.


Anatol - why keep questioning "...would sell a prime location to NSE! ". MHR made the decision to exit EFS back in April when it sold it major holdings to PVA (who didn't want the Atascosa acres).

Maybe the better question to ask is why didn't PVA buy those Atascosa county acres from MHR?