In 2013, Crimson will continue to focus on its extensive inventory of high margin, low risk crude oil and liquids-rich projects in the Woodbine formation with a continuous rig program planned for 2013. Subject to capital availability, the company may also drill test wells in the liquids-rich James Lime formation in East Texas and/or the crude oil and liquids-rich Buda formation in Dimmit County, TX. The complete 2013 capital program is being finalized for approval by the Company’s Board of Directors. "
Buda in Dimmit County is also USEG Working Interest.
Thanks Ed. Good info. I hope they do drilla Buda well with USEG. Still I would rather they try again to get a highly economic eagleford well. Operators all around are drilling more successful eagleford wells than they have been able to do. Only Dan Hughes has drilled nearby Buda wells, and we really don't have much data on how economic they are - likely CXPO knows more. Bottom line, if USEG doesn't drill they cannot grow production. And they have a much nicer ROI% in Texas than in the residual of their Bakken participations.
We have known Crimson is capital constrained. The very good news is they want to drill a well to test the Buda as soon as they have the cash to do so. The information they are getting about the Dan Hughes wells next door must still be positive.
If natural gas prices rally Crimson will have the cash. If their Woodbine wells overperform they will have the cash. If oil takes off and their stock price takes off they will have the cash. If none of things happen they probably won't drill this year.