RE:so just a word of cautionWhen these appraisal rates are normalized for a horizontal lateral length of 5,500 inches (the length of the average lateral planned in the upcoming program), the IP120 rate per well is approximately 900 boe/d (5.4 MMcfe/d).
The wells are continuing to perform as expected based on preliminary estimates and Southern will likely be installing tubing strings into each of the laterals in the next few months to optimize flow efficiency.
So, the first three wells are following a bit below their expected decline profile but natty gas with its premium is above $10 and the optimized production profile at IP 120 rises to 900 boepd for each well and 13 of these will soon begin their drilling program .
In summary, those 13 wells will add over 11000 boepd during their first three months of production over the next year .
Thats incremental boe of about 3 million barrels over the next year which @ $60 US per boe will bring in an additional $180 million US= $230 million CAD in revenues in addition to current base production .
Thats what I call a magnificent future which does not include a planned acquisition