Great question.  You need to look at this picture from their prospective, then yours.  It is about cash now.  Many of these independents need cash (vs. a Shell or other major).  While it is a cliche', "cash is king".  To the question.  They generate cash flow by drilling your well and getting a quick payback.  Nevermind that the well may be near zero in production in two years - that is your problem, not theirs.  So they will do whatever gets the well down, fracced and producing right now - even if it means serious damage for long term.  Why?  As the questioner states: "They have a host of wells to drill."  From their prospective, not drilling is the worst case.

 

Enough about them.  The questioner is right.  If you do not need the cash flow, then wait.  Yesterday, I spoke with a technical icon in this industry and he told me that they are taking a "white mouse" position.  If your well works fine, if not fine.  You cannot believe how much chemistry that would lead to good production that is being ignored to do things fast.  This situation is not far behind the BP thinking in the Gulf.

Views: 66

Reply to This

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service