RE: Morgan stanelyYa i can now more clearly see why the bottom has fallen out. 10 million for 220 boe is disasterous. Luckily though Legacy pays 80 plus percent. The science added about 4 million I believe to the costs so it is easy to see major savings. Also apparently the cap rock is very hard to drill through which adds to drilling costs but makes multi laterals so attractive. I think Leg/Bwd is the only group that has done this much science everyone else has kind of guessed. I'm happy that Shell wanted to be more involved and licensed a well on the new Raimount land. Right now I'm playing a bounce, I'm not totally sold on this being the next big play but we are undervalued our potential and volumes have been up. I'll call 0.21 as the low, hopefully I'm right. Also due to the stacked nature of this play I could see eventually from one pad drilling a multilateral Bakken well then a middle Banff or Second White Specks off the same pad using the same facilities. This would go along ways towards lowering overall costs. Lastly using full cycle economics our low costs for land but high drilling would probably balance out with late comer Cardium economics that have high land costs and medium drilling costs.
NLR