That's a pretty condemning news article for the play - at least in the areas where CP has been active and drilling. Discussing the TMS as an alternative here doesn't make me feel any better either considering the difficulties with that play.
CP's comment about focusing on the Permian Basin makes sense considering their position - there they have "proven reserves" and just need to put capital into those areas to exploit it.
In saying all this, a major spending several millions of $$$ for acreage and drilling / evaluation in a new play area is typical. I have seen it across the USA and overseas in many different plays.
Now the questions is - What about the other operators in the La Hz AC play??
PS - Expect an update from Kirk on his site about CP's position.
Down dip time
There is a LOT of area in this trend - a few wells will not evaluate everything.
I remind everyone about the Tx AC Hz Frac play - the Karnes County sweet spot that EOG and others are exploiting with great success is less than 30 miles from dismal results on trend in an adjacent county.
Mother Nature's relative ("Cousin Geology") can be very fickle and unpredictable.
McKowen: 350 BBL oil produced on the May 1 report.
Hebert: 1538 BBL oil
Wonder if the Hebert May production is only a few days? June production numbers will say a lot about what is happening here.
Very well could be since initial production was reported 5-21
Watching the prices for natural gas and oil I think drilling and leasing are going to slow down to very low levels. It’s hard to make money when your commodity prices are this low. Production has out run demand.
Supply growing faster than demand is the history of shale (and other unconventional reservoirs) and the lack of discipline among the management at mid-major companies is the reason for continuing depressed commodity prices. Only the majors/super-majors appear to have the discipline to manage supply responsibly.