A difference of opinion?? And a different goal.

[par_putt]

https://www.msn.com/en-us/money/markets ... spartandhp

[dan_s]

Well level economics are outstanding in the Tier One areas of the shale plays BECAUSE THE WELL COME ON SO STRONG. Shale wells produce about half the oil & gas that they will ever produce in the first two years. That is a good thing, not a bad thing.

Do the math.
> Say a horizontal well costs $8 million to drill and complete.
> Over the life of the well it will produce over a million BOE.
> So, if it produces 500,000 boe in three years and let's say it is 50% oil, 25% natural gas and 25% NGLs.
> What's the return on the $8 million investment? Assume, 75% NRI, 8% production taxes and $5/bbl LOE.

When I was at Hess, we were extremely pleased by any project that paid out in less than three years.

Anyone that says these shale plays are not profitable, flunked math in high school.

[par_putt]

But the question here is whether to front load production like most shale companies or be systematic about extracting the most it can from its acreage like the majors. (Exxon).

[dan_s]

All horizontal shale and other tight formation horizontal wells have to fracked very hard and they are going to come on strong. Personally, I want the companies that I own to do what generates the best return on investment.