It costs something to dispose of the water(injected) as it contains traces of oil and gas components. As posters mentioned, a lateral not too many feet above the oil/water contact is likely to pull in water, especially if flowed too fast. That is the greed factor of many independents. The water will be separated out, added to present operations and injected subsurface. As long as existing equipment can handle the additional flow, the water is not a problem. But it does cut into the volume of oil produced. If I were Sara's head engineer, I would adjust the choke size to optimize the % flow rate of oil vs. water to maximize profits as long as the water can be handled. Total fluid flow is 837 BOPD, a very healthy rate. I don't think coning in water is the problem with a lateral that it is in a straight hole as long as reservoir pressure can lift the water, that is why the 131 MCFD is important, it provides lifting energy as it expands.
I am hoping the Zeke perfs stayed in the sand stringers right above the 5800' sand, the shale stringers providing separation from the water.