RE: Production testing a mere formality"They know they have quite a hum dinger here.Perhaps 150 billion cubic ft of recoverable gas?"
What is that statement based on?
Darkstar that statement is based on speculation based on what adjacent wells are capable of producing and assuming this needle was threaded right into the thickest pay area.Seismic looked pretty good to me .
Lets assume they have 7 zones that can produce.
Some may be capable of 10 million a day others 2 million .
Will assume 30 million cumulative production .Dont forget some of these deep Texas wells actually produce more after 1 year on line.
So first year almost 12 billion cubic ft of gas produced 30 million times 365 days.(this will not happen).They wont be able to comingle so many zones.
But for simplification purposes lets assume they could.
With very modest decline rates 150 billion cubic ft can easily be produced from this type of well.RLI for this well will be significant.
Just my two cents to stimulate discussion.
Pure speculation but a realistic speculation based on production history in this area.
Irregarless DZR net asset value takes a big jump!