I don't want to mislead, so I have to say it wasn't a bald assertion. The last reserve report showed net reserves of 84 Mbbl of net, proved producing reserves. I'm going from memory because I don't care to look it up, but I am confident. I also remember that gross PDP reserves were several hundred times higher, meaning tiny interests in many wells. 84 Mbbl is about one-quarter of one Bakken well, so after reviewing several thousand prospects, designing or commissioning several thousand frac jobs, BECC comes up with 1/4 of one typical modern horizontal fractured well. Did not happen, makes no econmmic since.
84 mbbl PDP won't generate $49 million dollars of WI gross revenue from a horizontal fractured well over a few months, so unless BECC obtained $100 MM plus from no known source for its own account and drilled at least dozens of net wells in a few months, the $49 MM did not come from WI. Even overrides and carried interests, and reasonable fees would sugggest hundreds of net wells drilled over a few months with associated costs perhaps approaching perhaps a billion dollars. All without attracting the interest of people in the industry.
Just a dumb layman, someone other than reaper, please explain.
