Made the trip to check on Gonzo again and it appears to still be around 500 bbls of oil per day with very little gas. Still producing a lot of water so maybe the oil to water percentage gets better but from what i hear Gary's hope of 1000 bbls per day is just that: Gary's hope
think this might move the Needle? I think I saw that MHR has 50,000 gross acres or 5,000 net. Since this was/is all gas, maybe someone would have paid 1,000/acre (I thought I saw that Approach was paying 850/acre to buy additional land). Maybe someone would now pay 2,000/acre?
Nothing earth shattering, but a free 5,000,000 or so dollars is better than a sharp stick in the eye....
The acreage MHR has with arex is the cinco terry field only.
If you read the press release from arex they're planning to drill a horizontal well in cinco terry by years end and also do a vertical completion on a cinco terry well. I promise you Evans is well aware of what's going on and I'm sure (more so pending completions of these wells) that the price for their 10% just went up. It'll be interesting to see if MHR sells out now. They like to have operations on their properties according to Evans.
The stock is definitely reacting to the news. Evans is one lucky SOB.
Approach page 20, which shows Wolfolk Shale shows for Cinco Terry
and compare to the MHR presentation (page 18) which shows Cinco Terry acres, I am guessing that the yellow cross hatch area is the acres where MHR holds 10% WI.
Most of the Wolfolk shale shows are north and west of the area where I am guessing MHR has an interest. Note that this is just a guess and it seems odd that the second large AREX holding which is south and east of Cinco terry also has Wolfolks shale shows.
I assume the yellow hatched area is the 10%
from AREX...looks to be north of the area..