Imagine if you can fast forward a year to 18 months. It is quite possible that MHR would have:
12+ Eagle Ford shale wells producing (after hyperbolic decline) 50 bopd/well. That is 600 bopd. They could easily have 6-12 Marcellus shale wells producing an equivalent (again, after first year decline) of around 30 boepd per well. They could have a stable of conventional oil properties in Kentucky,W Va. and Ohio that have had the pipeline backpressure reduced, been recompleted or stimulated or had their lifting pumps upgraded, resulting in an addition 200-300 bopd in total production (across 2000+ wells).
They would own a 50% interest in a pipeline system that would now have a processing plant attached to it and collecting 3rd party gas and hopefully cash flow positive.
They have a drilling services division that is now performing work for 3rd parties, bringing in cash for the company, they have a salt water disposal system that will be more valuable as the Marcellus acreage becomes developed and finally, they have the Bakken, which may hold the potential for some serious production growth.
Will all of that come to pass? I don't know, but I know that MHR is not your typical small cap E&P with big dreams that never materialize. Gary Evans isn't interested in running a rinky dink little E&P. He wants to grow MHR and has executed on everything that he has said he would accomplish on previous conference calls.
I am very optimistic that they will bring in a strong partner for the midstream and that will be very important.