Hi, The announcement today gave the average rate for first 5...

Hi,

The announcement today gave the average rate for first 5 days while the well was cleaning up. It started with flowing back 1000 Barrels of frac fluid and ended up with 500 Barrels of Frac fluid on day 5.

The question is:

- Does the well produce more hydrocarbons progressively as the well cleans up ?

If it does then taking a straight line extrapolation for 5 days, the well would have started with 3.8 MMcf and 276 Barrels of oil on day 1 and on day 5 would have produced 7.6 MMf and 552 barrels of oil.

Taking company's view about getting 125% for gas prices, the value produced on day 5 (assuming above is correct) would have been

7600*1.25*5 = $46875 + 552*75 = $88,275 not bad for a well drilled in Chalks

Even at this rate, it will produce about $2M for first month (maybe enough to pay off the frac cost to hillcorp)

Now that chalks have been shown to be producing, we can easily double the Hartley's risk price target of $1.86 per share ie. $3.76