Breitling Energy Corp fka BECC

[FM II]

I don't know about Mackfish, but I was commenting on the Spraberry fields; but I can understand the confusion. All the Clayton Williams wells I mentioned are in the same field as the Breitling producers, the Spraberry Field. This field crosses a county line and is in Sterling and Andrews Counties.

The ambiguity was mine and I apologize. The 299 wells are in the same field as the Breitling producers. I was responding to your remark about why I assume Breitling wells will be bad when CW did well. The reasoning is 1) CW had a six year jump on production, thus suffering less depletion, 2) in a conventional play, location is important, not just area, 3) Clayton Williams didn't do so well anyway.

The relevance is in that you brought up the CW wells and I narrowed the scope to only the wells in the same field as BECC wells.

Its all a moot point though. Even based on your assumptions and guesstimations, a typical CWEI prospect would be profitable at $100 oil, which was the price of $WTIC at the time they signed the farmout agreement.


It would take quite a bit more than $100 a bbl to make a reasonable return on investment, but no matter. Between January 1, 2014 and July 31, 2015, spot oil was above $100 a barrel 42 days out of 297 trading days. At the time BECC spudded wells this August and fall, it was around $45 or below. https://www.eia.gov/dnav/pet/pet_pri_spt_s1_d.htm


If you don't like my assumptions and "guesstimates," you are certainly the kind of investor BECC is looking for. If you think drilling in a field that needs $100 oil to pay back expenses is prudent, you are who they are looking for. The argument in favor of drilling is to earn the farmout, but my argument is look at what you would earn.

You are right that BECC undoubtedly has interests, however small, in hundreds of wells. Funny how they only mention the bad ones.

The question remains whether or not lower drilling and recovery costs, coupled with improved fracking efficiencies, will make future production profitable in a lower price environment and I don’t believe historical TRRC production numbers provide any insight.

You are right, it only provides insight into future well performance. Improved well cost and frac technology, something BECC has nothing to do with, is another subject that I have some knowledge about, but not the time.