[[While other companies are making wells in other parts of Erath County, there has been no good wells made in the acreage south of Hwy 377 and north of Hwy 67. This happens to be the exact place IFNY has acreage]]
IFNY's acreage is well south of both hwy's. EOG has made a couple of wells between 377 and 67 in eastern Erath. EOG's better wells are north of 377, and while they are decent wells, they are nothing like the wells further east into Hood and Johnson or Tarrant.
ch4_tycoon:"IFNY's acreage is well south of both hwy's. EOG has made a couple of wells between 377 and 67 in eastern Erath. "
Let me expound a little on what I said earlier. If you follow a map, take Hwy 377 out of Tolar toward stephenville, but where the highway juts SW, keep drawing a straight line. Now follow Hwy 67 as it exits Somervell county, and where it juts NW towards Stephenville, keep drawing a straight line. The two straight lines you have drawn will meet somewhere west of Stephenville, close to the Comanche/Erath border. This is the dead zone that I was refering to, and IFNY's acreage just happens to lie in the middle of it.
EOG has not made an economic well within that area. They have drilled 8 or 9, produced 7 or so, and they are all sub-economic. The reason that this is critical is that EOG is furthest along cracking the code in Erath county, as witnessed by their wells in the Morgan Mill Area and in the Houston Ranch area. And if they can not figure out how to make economic wells in the dead zone, IFNY has no shot, partner or not.
ch4_tycoon wrote:"while they are decent wells, they are nothing like the wells further east into Hood and Johnson or Tarrant."
EOG doesn't drill Tarrant County. But your assertion that the Erath County wells are not as good as Hood or Johnson are correct, but everybody knows that. You have to scale down your economic model to fit the reservoir. Erath county acreage, as a general assumption, is not as good as Hood county acreage, and Hood county acreage, as a general assumption, is not as good as Johnson County acreage. This assumption goes for XTO, KWK, EOG, etc. So given this undisputable fact, it is quite clear to all that IFNY, when faced with inferior acreage and their own latent inability to be successful, is looking up a wall they can not scale.
Just an opinion, of course....hey where'd that irrelevent and useless poster Bshort go? Haven't heard from him in a while. Maybe he's at the annual meeting of Kerr McGee Forced Retirees?
Wow that was a pretty long winded and useless opinion and response from some old crazy coot who spends his day trolling the Infinity board cuz no one will buy his useless turf. Better yet when you got no life, no wife or a clue on how to drill and complete a well then its a perfect recipe to sit out on the ranch and shovel up the remains of all the animals last nights dinner.I'll stick to facts and you stick to "general assumptions" and your latent inability to get a riser and let us in the know discuss this play. Lang haul is a euphemism for one sorry f'd up old coot who stunk as an analyzer and worse yet as a geologist.Infinity will probably announce an Erath partner this month, a buyer of Colorado next month, some news on well recompletions in Erath in November and some solid results going forward in December right at about the same time that NG prices hit $10 plus. Time to load up the bus.Just an opinion.
[[The two straight lines you have drawn will meet somewhere west of Stephenville, close to the Comanche/Erath border. This is the dead zone that I was refering to]]
OK, yeah I pretty much agree with you.
[[And if they can not figure out how to make economic wells in the dead zone, IFNY has no shot, partner or not. ]]
I wonder about their completions in the area. I know it isn't right next to that area, but it is close enough for consideration, but look at XTO's wells in SW Hood. There are several of them in the area, and almost invariably they are much better than any offset operator's wells (including EOG and Burlington). Is XTO doing something the others aren't on completions? Would whatever XTO is doing make a better well in Erath, for EOG or IFNY? Looks to me like there is still some code cracking to be done.