Anatol,I (usually) love your posts but I think you are off the...

Anatol,

I (usually) love your posts but I think you are off the mark with that research.

Look at your own map - the high production is in the NNE direction (Karnes, Gonzales, DeWitt and others).

Statistical average first month production:

Atascosa : 8,390 bblo + 9,689Mcf gas
Gonzales : 13,475 bblo + 10,635Mcf gas
Karnes : 14,329 bblo + 66,037Mcf gas
DeWitt : 21,551 bblo + 123,873Mcf gas

(figures courtesy Gary Swindle (geologist) Feb 2012. Lots of public info to do further analysis.

Plus its never ever a good thing to look at 24hr IP flow rates - big numbers with big declines - best to always look at IP30/60/90.


I think they are overpaying (considerably) given what MHR paid for Peeler Ranch as a yardstick...

Now they are also on the decline curve treadmill with a CDP lease obligation to boot...

Plenty of Aussie juniors have failed in the shales of the USA - hate to see NSE come unstuck there.