Did I read this right, they have 98.9 wells drilled and have an obligation to drill , I think it said 206 wells by 2016? If this is true, they still have 107.1 wells to be drilled. If I am correct (not exactly sure) there is plenty of room for profits and divys.
If you look at the total amount of oil vs. the total amount of wells you will see they are getting less oil with 98.9 wells than they were getting with 40.2. Something is wrong and the board is not giving answers. Smells a little fishy to me.
Any single quarter’s production depends not only on rig count and working days, but also on location. Oil is not evenly distributed across the Area of Mutual Interest; it may be they have yet to hit the sweet spot.
I do worry about the character of SD’s management. Their last conference call did not inspire confidence.