I think Keith played it straight--
Initial production is exactly that...initial production. As Pink Elephant stated earlier (message #8815), the number was a phenomenal one...unheard of in this part of Kansas from shallow wells in the Squirrel Formation. I agree with Pink Elephant that the production rate will deteriorate over time (as all wells do), but at this point it would be pure conjecture to guess at the rate of decline.
Focusing on the positive...all of the wells in the immediate surrounding area appear to have benefited from the stimulation techniques that CT and crew used on Hemi-2. This is great news and generally an unexpected surprise. More profits sooner, without jeopardizing the integrity of the formation...is a good thing.
I, for one, was guessing that the well would come in above other wells in the Squirrel formation (maybe 15-25 BBL vs the historic 5-15 BBL for shallow wells in the area)and was very pleasantly surprised by both the IP numbers from Hemi-2 and the effect of the stimulation on the nearby wells.
It will be interesting to see if the next few new wells are drilled in the immediate area of Hemi-2, or in parts of the Hemi leases where other reworked wells could be similarly stimulated. My guess is the latter, so I will be looking for a change to the current Intent to Drill request. New drilling sites should start popping up with the official Intent to Drill certificates soon, I would think.
GLTA. Hemi just keeps getting stronger on the facts. No hype needed--positive surprises always welcomed!
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