According to the TRRC, Clayton Williams has produced 189,722bbls, from a half a dozen leases since 2009 in Sterling County. Most of these CWEI leases are still online and producing.
That area appears to be consistent in production, so why is Clayton Williams so smart for drilling it, while many accuse Breitling of being shady by participating in the same productive field?
The ambiguity is yours by shifting your focus and comments, to the 299 or whatever wells scattered throughout the Spraberry formation.
The fact of the matter is that the Clayton Williams Parrarmore has been a solid producer for six years as you have mentioned.
The Breitling farmout in that area was the topic of discussion before you shifted it to include whatever it is you are trying to shift it to. Typical for the BECC board though.
The above are copied from your posts. How am I shifting off subject? Yes, I included wells in Andrews County then narrowed it to wells near the BECC wells. Really, I don't understand how I shifted the subject off what you brought up or off the farm-out for that matter, since I narrowed the selection to offsets of the BECC wells. The CW Spraberry wells suck overall, the CW wells offsetting BECC suck. Just because you don't like that, doesn't mean it is off subject.
By the way, IHS reports 12 wells with CW as operator in Sterling Co. 190 Mbbl divided by 12 equal 16 Mbbl per well. The wells suck.
Your analysis of $WTIC seem to be lacking as well. I was speaking of the price of oil at the time that Breitling announced the farmout agreement in February 2014. You seemed eager to point out oil prices well into summer 2015, which is not consistent with our conversation.
No, I was pointing out that oil was rarely over $100 a barrel and that it would take a fool to think that because oil was $100 on a particular day or month, that it would continue to be there. Second, the price of oil at the time of spud is particularly important, because if you need $80 oil and it is at $50, you should assume the well will not pay out. One might drill anyway to preserve a farmout, but to spend millions more to preserve non-commercial acreage tells a story. Now, if one makes money regardless of outcome because you take fees and overrides, so be it, but it doesn't do much for outside investors.
Since my point about $100 oil is that historically it was not the norm at the time of signing, it was foolish to think it suddenly would be a given, I don't see how my analysis was lacking. I should have spelled everything out, I suppose.
As far as the CW wells are concerned, you specifically suggested that I assumed CW could drill good wells and Breitling could not. I demonstrated, quite the contrary, that the CW wells were bad. I showed them bad overall with the 299 wells, then I showed them bad near BECC wells, so what else do you want?
What I am saying and have always said is that having Clayton Williams as a neighbor, pioneer and partner in Sterling County is worth taking note of, although it certainly does not define Breitling’s viability as a whole, since Breitling has interests in hundreds of wells that include, but are not limited to Texas.
It is worth taking note and it is worth taking note that CW wells were poor in the area. I didn't bring up CW wells and you are shifting the discussion. I simply responded to you being wrong about me thinking CW drilled good wells in the area. Maybe BECC had a specific location based on 3D just like they said. I think they drilled in an area that was not commercial at contemporaneous prices. I highly suspect the area is highly depleted, but I never stated that as fact. I didn't bring up CW, but when you did I simply demonstrated that his wells also sucked, for whatever that is worth.
BECC is transparent as mud about just about everything and I think there is a reason why, but the performance of the wells they put on line is all we have. Call them up, they invite you. Ask them for the top 5 prospects that they generated that they have drilled over their 12 year life.
As far as me not knowing how old the company is, I have already demonstrated that I was aware of the same facts you were and that we have different interpretations. The fact that you cannot move on is telling.
Just to re-iterate, I have never suggested that BECC has never made money for someone. I have suggested that all this industry leader, innovator, frackmaster is an exaggeration. No one has demonstrated otherwise, which doesn't prove me right beyond a shadow of a doubt, so everyone should do their own research.
CF specifically stated that they could make money in a weak price environment. Doesn't seem to be the case based on the numerous lawsuits for failing to pay bills. I questioned whether they can continue drawing in outside investors. You said they are. I asked how you knew that and you ignored me.
You are constantly saying I am wrong, but everything I have said of any import has been correct. I have said there is no evidence, even in their filings, that they have the assets to justify even their current market value. I have said that they do not bring anything to the table, like expertise or drilling success to justify the market value. I have said that all the specific wells they mentioned in their corporate presentations are bad. Some of the wells in ND are good, but BECC has tiny interests and we will never know whether they will payout BECC's costs. We probably will never know whether the royalty interests that Breitling bought have or will payout purchase price.
Now let's look at why one should be confident of BECC's success. Chris Faulkner is good at convincing some people Breitling is a successful E&P company.
