With the wells being tested for communication as discussed in the call, KOG is investing some production volumes in applying some serious geology and seismic data to increase the % recoverable across their best plays. It will be short term pain for long term gain and when the science comes through and the total EUR per spacing unit is posted, the company can then be fairly valued. They are keeping completion techniques close to the vest so they are not just repeating what they have been doing which has been delivering 1600 gpm wells like clockwork. It will be interesting around here in September / October when they report on these projects.
12 wells per unit, average EUR of 600k - 700k for 7.2 - 8.4 million barrels of light sweet per spacing unit is my guess. think that might move the needle. question is will they sell before they prove their value?
Most folks have no idea what Geological information is or does. But KOG is using basic/advanced Geology and Engineering to maximize their production via drainage spacing, etc etc etc. My hat is off to them for what they are doing. If I was healthy, and/or younger I would love to work for a company like KOG. These folks are breaking new ground, but not in a reckless way. Regards.