PER missed the target dist last qtr. PER reduced the total estimated reserves of the trust. The number of rigs drilling was reduced to three. When this happened I looked up the subordination thresholds in their SEC filing for each QTR. These are what can be expected through the first QTR 2017. .51,.53,.56 and .58 for 2013. Higher in 2014 then slowly declining. pretty simple. What i don't understand is why SD is not drilling with at least one more rig because the increased dist income would go mostly to the subordinated units
Right. So if it was truly an issue with well performance, I would expect they would drill as fast as they did in the past to cover poor production results so they could end the subordination period as soon as possible. So, I hope it's just a temporary hiccup in bringing wells on production this qtr.