Management continues to have problems with clarity. They have stated for several months and as recently as Tuesday that they expect the IP on Hagen to exceed 500 bbl. They then include this again on the new presentation. The Thursday new release then says as much as 350 bbl. Not producing 350 only has receached as much as.......
SAWYER NEEDS A REMEDIAL MATH CLASS
Below is from slide 12 in new Feb presentation
Hagen EF No.1H 14,000 ft measured depth 9,500 ft vertical depth 5,300 ft lateral extension 5.5 inch casing Working Interest: 15% Drilling completed Nov, 2010 Initial Production: January 2011 500 BOPD anticipated based on surrounding EF well production
And I even doubth that 350 BOPD is the real number - I suspect that the real number is considerably lower, otherwise it would not make sense to put a horizontal fractured shale well on artificial lift that early. It really stinks.
1) They haven't announced the IP yet. 2) Pretty clear to me that the expected IP is based on wells in the vicinity, as stated. 3) Pretty sure this oil E&P is not an exact science where someones expectations should be understood to be expectations not Fact. 4) I expect we will know the IP in a few days or so.
He should have known, the offset to the Hagen, the Texas Two Step is a dud. I dont know where he gets these numbers. Do you think he even believes his estimates of 390 MBO? LOL Dont worry boys, EL TEX is getting rich. Have fun, treat your LEI stock like dues to a club, you are part of an oil boom. LOL hand on, and you may be part of an oil bust. LOL Or maybe you get rich. LOL I want everyone to get rich so you will buy me a steak and some whiskey