How's it going... in the STACK we drill laterally in the MERAMEC formation. It's Mississippian in age and is a massive oil play across a lot of Oklahoma. In the northwest it's a limestone with tripolitic charts and in the STACK it's actually a siltstone. What makes the STACK unique is that even though it's a siltstone, which it's mostly consolidated in a lot of areas, in this area instead of silica rich cementation it actually has clay cementation which is much softer allowing us to drill a 10 thousand foot lateral on one bit in just 4 days. It's pretty amazing. In the STACK, the Meramec is located anywhere from 9000 to 12000 feet deep. We usually reach total depth on a well at around 20,000' to 23,000'. It's unusual for our wells to produce under 1000 barrels of oil per day on initial production. 1000 to 1400 barrels a day is the average. With some wells reaching over 2000 barrels a day. That doesn't even include the large amounts of gas each will produces. Over the life of the well it's around 1/2 a billion cubic feet with the average around 250 million cubic feet. What also makes the STACK amazing is that the are four producable zones. The upper Meramec, the Meramec 200, the Meramec 300 and the Woodford. It isn't unusual to drill 12 extra length laterals on one section. Pretty cool. The SCOOP is a newer development where they drill predominantly in the Woodford shale. Im not sure of numbers over there but I do know that Continental Resources moved most of their rigs over there from the STACK. And I do know that their numbers in the STACK were about 1200 barrels a day. That was their target. So im assuming they're getting better numbers in the SCOOP if they're doing that. What's also nice is these two areas are profitable at 40 to 45 dollars a barrel. It will be very interesting if CEGX gets a few leases in this area because of they do they will have absolutely no problem with bringing in investors to drill them. Both the STACK and the SCOOP are fairly young prospects so it wouldn't be crazy if they actually indeed obtain some leases. I guess time will tell.
