Culled from the SeekingAlpha transcript of the Aug 8 Q2F conference call
In the Q&A session, in response to Neal Dingmann (SunTrust Robinson Humphrey)’s question
on what sort of the
current depletion rate on the existing wells at Selmo, N. Malone Mitchell (CEO):
“You
still have some fractures. When we're able to stay in the MSD, we actually have
relatively low decline curves. But I think those are still going to be on
average if we look at historical field basis, the baseline productions declines
in the neighborhood of 18% per year. We've had a couple of wells that have come
on and declined more significantly than that and some less. I will put out --
now that we're getting to 10 wells, I tell you, in the upcoming quarter and one
of our presentations coming up, we'll go ahead and put out 10 wells statistical
data on what the MSDs looking at -- looking like there. LSD wells are more
spotty. We really at this point in time, we've got 1 improving, but we've only got,
really, 1 of those 3 that we consider easily commercial and the other 2 are --
don't look that great, so we had to quit to drilling the LSD wells and focused
on the MSD. But with 10 wells will turn out kind of a statistical curve analysis
for that on one of these upcoming presentations. As far as running room, right
now, we've got identified locations we think that take us through the balance
of 2015, given a one-rig pace. And it may be that we're able to increase that
pace at some point in time. We had slowed from 2 rigs to 1 rig because we were
having problems staying in zone, but we were trying to drill perpendicular to
the faults. We're doing a better job of that now, but I don't know that we're
yet confident enough in our geological mapping and understanding to get beyond
one rig running in the field right now.”