Here is a post from another MB where Devon discussed Woodford potential in Miss Lime. EQU Investor presentation shows us drilling through the Woodford to get to the Hunton: Maybe there is a potentail stacked resource:
David A. Hager – EVP, Exploration and Production: Well, we’re pretty excited about this opportunity overall, because I think by the nature of being a shale play and in fact it is a source rock, actually for the vast majority of the Mississippian play. But in nature, shales tend to be more consistent in nature and so that has led to greater consistency and well results, already and we’re just at the beginning stages of really characterizing the overall play. So, we are seeing more consistent results. There is obviously some variability, you know some of the keys we’re looking for looking for where we can enhance the permeability through fracturing and you see some variability depending on the thickness of the reservoir. But overall, it is a consistent play that produces strong economic results. You can see we are using a – essentially for right now the same type curve is we are using for Mississippian, but it’s going to be a little bit lower well cost. So, that’s obviously even going to enhance the economics a little bit more and we – as I highlighted, we are very confident we derisked 100,000 acres and we see the potential for up to 400,000 acres of Woodford potential across our 650,000 acre position in the Miss Trend. So, it’s an exciting play, if it works out to scale, you can do the math, but it’s going to – it can add a lot to our light oil story.
Arun Jayaram – Credit Suisse: Do you have, Dave, the same water issues that you have in the Miss Lime?
David A. Hager – EVP, Exploration and Production: No, you don’t have near the water issues you have in the Miss Lime.
Doug Leggate – Bank of America Merrill Lynch: Dave, first to you perhaps, so the Mississippi Lime and the Woodford. Are we now basically seeing the Woodford as a primary target for your acreage there? And could you talk about what the implications are in terms of development fund, rig count activity or rather I guess well activity and ultimately how you might change capital allocation associated with plan? I have got a follow-up, please.
David A. Hager – EVP, Exploration and Production: Sure Doug. We like both of them. I think that’s the key. We like the Woodford and we like the Miss Lime. This is not necessarily – this is not negative on the Miss Lime. It’s just where we have additional potential here in the Woodford. I think that’s really the key. The Woodford is a little bit deeper and so by drilling and how some of these additional qualities that we’ve described have been shale. Probably it’s more consistent results, a little bit easier to drill, lower well costs, all of which are very positive for that, and in addition being deeper when you drill Woodford well, you hold all rights above that. And so, we’re going to have a tendency to drill more Woodford wells here in the short term to make sure that we get our acreage secured through the Woodford. But ultimately, it’s going to take the rest of this year I think really to – and that’s what I’ve been trying to say consistently that it’s going to take the rest of this year to really get a clear understanding of what the full potential is on both the Woodford and our Miss acreage. But it’s starting to emerge pretty positive, I can tell you, and it looks like we certainly have a strong leg to our – for our next oil growth within Devon and so I like where we are. Bottom line it is just as nice to have an additional formation such as the Woodford to really bolster that growth
How much potential is there in extrapolating results from another company's research in another zone to EQU and the zone we are tapping? Sounds like a stretch .. are we that much in need to speculate on such remote relationships? I hope that .. wish that the management would be more transparent so we do not have to do such far reaching guesses as to what our future potential really is. It sounds like that is what even the suitors are having to contend with.
You misunderstand the intent of the posting. It was not to make any comparison to Devon but to
evoke some discussion from someone who may be more familiar with the geology about the potential for the "Up hole" potential mentioned by Equal to be in the Woodford which they show being drilled thru to get to the Hunton. As best I can determine most leaseholds encompass zones thru which the drilling penetrates and/or from which there is produciton. Equal made the "Up hole potential" statement and has hired a bunch of new geologists but has given no furhter indication as to the area of interest and the Woodford is a biggie stacked play target for both SD and DVN in the
Miss Lime where it appears to be below their production zones.