drilling 3, 4 wells to produce unconventional shale oil and then watching the oil production decline -- This is not the way to build an oil company with shale oil assets!
To be successful with shale oil/gas you have to drill many wells like, 10, 30, 50, 100 wells to survive the production decline and at the end you get many stripper oil wells together with perhaps 30% wells that hit the sweet spots . The production from the stripper wells plus the production from the sweet spot wells will make it.. With 60 mil. $ you could drill perhaps 15 wells in Wolfcamp? And with some luck you get the break even.
I hate to watch the Wolfcamp oil production decline as I hate to watch the share price decline since end of 2009.
The beginning with Wolfcamp was good but now I have the impression they want to give up because the first try didn`t work out as planned. Obviously only stubborne texas oil men can make money out of shale oil by producing oil in Texas as in Wolfcamp but not MPO. Is MPO too dumb to apply learned lessons in Texas and have no guts to increase the oil production with more wells there?
MPO Price at posting:
30.0¢ Sentiment: None Disclosure: Not Held
