Oak 190,000 net Acres - Approx 300 sections & growingIP365 = 628 boe/day 28% Liquids (Current Type Curve)
1.3 MM BOE (21% Oil/NGS)
273,000 boe/liquids = approx 25 million dollars ( Liquids Production)
The economics at Oak are fantastic for a gas oriented play, especially from the perspective that it is a gas play producing 28% liquids in the first year of production.
With reasonable gas prices ($3.00) these wells should pay out in the first year. If gas can pay for the wells operating costs, the liquids will almost payout the well in the first year.
Two Positives worth mentioning.
The first is that the wells are all performing above the type curves, and the reserves will in the future likely be adjusted upward, and the type curves will reflect a quicker return on capital.
The second big positive is this, with 190,000 acres, 300 sections play area, likely growing as David Wilson would find it hard not to acquire additional land.
Wells are getting longer, companies like POU are drilling 4800 meter laterial wells (3 miles), and my guess is that these type curves wil only get better.
Another world class play, with the capacity to grow significantly.
Currently Oak has the ability to expand to 90 MMcf a day, using the IP365 liquids ratio of 28% this means Oak has the capacity to produce 20,000 - 21,000 boe/day.
These is a play that a major woud be interested in, and it is not a postage stamp pay, and they will be taking advantage of improvement in drilling technology, without limitation of running room.
Kelt very much in my mind resembles POU, and it is really a private public company with David Wilson at the helm and would like it no other way.
IMHO