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Permalink Reply by Lorissa Gail on April 7, 2010 at 4:30

Thank you for this information! It is good to see research based development in shale areas. That said, I was a bit disconcerted about their statement on page 12:

"Companies that drill to hold acreage by drilling a well/640 acres and wait to drill offsets will likely negatively impact reserves."

There has been a lot of quick vertical well drilling in Shelby County! With depressed gas prices and the lower cost of a vertical drill I fear shale reserve management is not what is driving development.

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Permalink Reply by Les Bamburg on April 7, 2010 at 5:12

Lorissa, I believe you have to take such operator statements with a grain of salt as each is trying to convince the investment community that they are doing things better than all other operators.

It does explain why EOG is taking a different approach by drilling multiple wells per section immediately. Of course they have that luxury since they are are not faced with significant lease expiration issues.

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Permalink Reply by ALongview on April 7, 2010 at 5:20

Same reason all the maps seem to conveniently wrap around the presenting operator's acreage.

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Permalink Reply by Taylor on April 8, 2010 at 0:35

Thanks Les.

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