Is there more to this issued report 5/1/19? Not seeing it on Sonris...
New production posting on McKowen #1
Agree with Jay / looking like they shut the well in all month (only 8 BO produced) and sold 921 BO from the tanks (at least they got $50,000+ in gross proceeds on that).
Also tubing run and isolation packer permit approved 4/8 - likely connected to lack of production for April...
Good catch on the tubing.
From what I can gather the oil companies believe that commercial quantities of oil and possibly one day gas is there. That’s great but it looks like so far anyway that the right methods or technology hasn’t been applied. It may not be available right now. I know there have been massive changes in the oilfield since I left. It may take the next evolution of technology to produce it. That being said if the oil is there it will still be there waiting. We just may not be here when that happens.
The technology is basically already there to access and produce any O&G reserves in the AC in the part of the trend. The question is the volume that this reservoir contains and can give up using the frac stimulation approach. The big wildcard on all this is oil and gas prices - economics will drive how this play is developed in areas where the AC will be proven to "work".
You mean 2 years?
Instantaneous production decline at hyperbolic rate decreases monthly net cash flow drastically. That initial moth's net revenue will be 10-20% of that after a few years.
Another thing that leads you to believe this isn’t working is there is no new leasing and I haven’t heard anything about speculators. If that were true Amelia would have sold a bunch of their acreage by now
Amelia has already assigned a couple 100,000+ acres in multiple deals to several of the current players. I also think that Kirk likely holds a couple hundred more while waiting for some well results. No company is going to go beyond there initial land positions until they can confirm the economics of the play. I suspect they currently hold enough dirt to conduct their exploration plans.