Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Jim P. who wrote (182510)	2/11/2014 2:01:50 AM
From: Jim P.	2 Recommendations Recommended By Bocor Ed Ajootian Read Replies (1) \| Respond to of 206181

PXD update has the Midland County as probably the most valuable acreage. A surprise I am sure that the Lower Spayberry can be as economic as the Wolfcamp B zone. No report on Upper Spayberry. Pad drilling should include multiple zones at some point as the economics would justify multiple zones. Most of the acreage that belonged to PSE was in Midland County. The company has been believing it's owns story for a while as shown by its actions. Even changing the decision to sell the Barnett acreage to concentrate on the Midland Basin is long term bullish. From the press release. Still waiting on the Jo Mill economics which I expect will be near the 100% IRR's also. Company also threw in every write down they could think of. Most companies that do this IMO are trying to clean up the books for a long run of favorable comps. PXD will run but timing might be later in the year when the show me crowd sees the production increased. I expect the weather event pushed the ramp out a month to 3 months. jim concluding that production data from Pioneers first 10 Wolfcamp A, B and D interval wells on its northern Spraberry/Wolfcamp acreage supports estimated ultimate recoveries (EURs) for wells with 7,000-foot lateral lengths of:1 MMBOE for Wolfcamp B interval wells in Midland County with before tax returns of 100+%, 800 thousand barrels oil equivalent (MBOE) for Wolfcamp A interval wells in Midland County and Wolfcamp B interval wells inMartin County with before tax returns of 100+% and650 MBOE to 800 MBOE for Wolfcamp D interval wells in Midland,Martin and Andrews counties with before tax returns ranging from 45% to 95%; placing four additional Wolfcamp B interval wells on production in the fourth quarter (two were in Midland County with 24-hour peak initial production (IP) rates of 2,673 barrels oil equivalent per day (BOEPD) and 2,347 BOEPD and two were in Martin County with 24-hour peak IP rates of 1,606 BOEPD and 756 BOEPD); early production data from these wells also supports EURs for Wolfcamp B interval wells with 7,000-foot lateral lengths of 1 MMBOE in Midland County and 800 MBOE in Martin County;placing first Wolfcamp B interval well in Glasscock County on production in early February with 24-hour peak IP rate of 1,460 BOEPD;placing the Companys first five Lower Spraberry Shale interval wells on production in the fourth quarter and early January in Andrews,Glasscock, Martin and Midland counties, with 24-hour peak IP rates ranging from 537 BOEPD to 1,660 BOEPD and an average oil content of 84%; early production data from these wells suggests that Lower Spraberry Shale EURs will range from 575 MBOE to 800 MBOE with before tax returns ranging from 45% to 100%;continuing to test horizontal downspacing in the southern Wolfcamp joint venture area; six wells downspaced to 480 feet between wells continue to display similar production performance to six offset wells placed at 720 feet between wells;