Yes- it seems that they abandoned 1 horizontal well in the Brazos section. From what I understand they plan to end up with a total of 20 (9 new ones, 11 workovers) wells so I am unsure as to why the stock would be down over 10%.
Even more alarming, they dipped into cash reserves just to get the distribution up to 46 cents. So it's not likley that .46 is sustaionable without greater success in the remaining new wells. That's JMHO as I've not done any research into their drilling program - just read their finincials and press releases. Comments and contradictions are welcome. I'm very long with VOC in my IRA account and am worried. But this is not the time to sell.
They did not say they hit "a bad well". They said they had mechanical issues with the wellbore. It's quite possible that they hit "a good well" but lost the drill bit two miles underground and could not recover it. That happens from time to time in these horizontal wells.
My guess is that it might settle around $17 before x-div.....Was in at $18 and closd it out about 2 weeks ago for $18.79.......for the past two weeks I felt like kicking myself in the butt but it turned about to be a lucky move had a few $15 naked puts which I sold for 75 cents about 2 months ago for April and unloaded those for 45 cents yesterday also.....Put those moneys to work in NCT and very satisfied with results there.