Replies to This Discussion

Permalink Reply by Terry L. Antee on May 4, 2012 at 4:40

Interesting point on the Robertson well they were doing a BHP buildup. I would like to see those numbers when they come out.  It is like shows while drilling in a tight zone you only see what you drill up. The question is resevoir, is there anything feeding in away from the frac. Can you frac enough area to make a well economical?

Permalink Reply by Big McInnes on May 4, 2012 at 4:53

I believe Southwestern knows a little more than they are telling us. If they were not somewhat certain the wells could hold for a sufficient length of time, they probably would not be spending an additional 50 M in new acquisitions for 2012 while discussing additional rigs and play development.  

Permalink Reply by Big McInnes on May 4, 2012 at 7:33

"This reminds me so much of other plays I have been involved in where lots of good money was thrown after bad."

What oil shale plays have you been involved in that have gone bust? Just wondering if you could provide any examples....If there are so many that you have personally been involved in surely you could tell us of a couple of them. I personally have not heard of any source rock plays that have been a bust in the past 4 years, actually it seems every one I have heard on or worked in have been a success.

Permalink Reply by Lee Max on May 4, 2012 at 8:56

Well said Big M.

Permalink Reply by G Meaux on May 4, 2012 at 9:31

Sounds like Broadbent's glass is half empty. Mine is half full. He's probably just killing time waiting on Dec. 21st.

 

Permalink Reply by jeff on May 4, 2012 at 10:00

The Barnett/Wooford Shale play in the Delaware basin was a bust in 2006.

Hundreds of thousands of acres in one of the largest west Texas land grabs in history.

Permalink Reply by DavidR on May 4, 2012 at 9:39

re: Not a chance in the world any of these wells, so far, will ever pay out. 

It just leaves me with one basic question: Why would SWN, a publicly held company who arguably has more and better information about the play than any other organization, continue this throwing good money after bad?  I can understand they wouldn't want to admit they have made a $250M mistake on the leases.  But would they really be willing to move 10s of millions in new capex to the region if they believed, based on information gathered to date, that it is "good money after bad?"

Permalink Reply by inthestix on May 4, 2012 at 11:23

Only the government would do something like that David!  Especially the current one! lol

Permalink Reply by Robert Carr Head on May 4, 2012 at 14:13

Another thing that effects what is an acceptable pay out time is what are the other alternitives?

When gas was $6.50 a thousand  swn could require a shorter payout time for an oil well because they could drill another gas well. Also  the cost of borrowing money will effect the desired payout time.  The outside world will change what is the minimum acceptable time.

Permalink Reply by Robert H. Nunnally on May 4, 2012 at 14:33

I think that the most interesting part of the Garrett well report is

what it is producing i.e. gas and high gravity oil. The results were

disappointing to investors as evidenced by the 7.2% drop in share

price. The play is just starting.

Permalink Reply by Big McInnes on May 4, 2012 at 15:13

The market dropped as a whole today by a couple hundred points because of crappy jobless reports. Just about every sector was affected.

Permalink Reply by Ed on May 4, 2012 at 18:37

The 7.2% drop in share price was because SWN reported a 21% drop in profits, not the results of one well.

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