Management stated that all of the 17 Chincontepec wells have been completed and are on production. ROE used a new completion technique on the last 3 or 4 wells which was very successful and as a result these are some of the best producing wells in the 17 well program.
None of these wells are horizontal wells. ROE did do directional drilling on many of the wells, but none are horizontal wells.
These 17 wells, while all are now completed and producing, were all experimental wells to determine and test zones, oil intervals and drilling and completion techniques. Management did not comment on why none where horizontal, other than to say they were testing zones and learning and they wanted to get as many zones and areas tested as possible.
This shallower zone and the wells in Chincontepec are what management refers to as their Million dollar zone as compared to the Billion dollar zone in the Upper Jurassic.
ROE needed money to do the Upper Jurrasic proof of concept well otherwise they said they would have drilled more and added to the 17 well program. My take from this is that this program was highly successful and profitable and this will be expanded once the contract migrates and more money is in place. Once this occurs I expect they will do horizontal drilling.
While management did not say it, I expect they wanted to get as much tested as possible while using the partners money. This testing is important for developing a reserve estimate.