RE: Huh?"This being said the well did come in under forecast on production and over budget on cost"
That explains the lack of stock movement today. The well produced 1080 BOE/D but only 765 BOP/D with the remaining being gas. I do not know what they get for the gas but I bet it is less than $7.
The cost to drill this horizontal well was high and 1080 BOE/D well probably is slim on the economic side. The positive aspect in the press release was the high flowing pressures 2465 Psi which indicates the formation has a far mount of pressure. The low production rates suggest a low permeable reservoir that will produce at low rates for many years.
Additional horizontals are needed to see if they can improve on the production rates in other areas of the field. Matching the initial flow rates of the vertical wells in the pool will not cut it because of the added costs to drill Hz wells. You need the Hz wells to have initial production rates at least 3 times the verticals and the production during the decline phase to exceed the vertical wells decline rates also.
I am sure as they drill additional Hz wells the costs will come down as they become more experienced on how to drill these wells and oil prices north of $70 is certainly positive going forward.