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OakesCS

07/21/12 5:52 PM

#5447 RE: DewDiligence #5411

HES Seeking Alpha article

i wouldn't give the cited article much significance. The author seems more interested in presenting tables of numbers in random order rather than making any sense out of the numbers.

Just in case it's useful:
stages refers to the number of discrete sections of a well which are separately fractured. How many stages are fractured will depend on the length of the well and what the logs have revealed about the intersected rock.

IP refers to initial production rate [production in fracked tight reservoirs is frequently high initially and tails off - sometimes very rapidly]

choke is an orifice used to control flow rate and the pressure drop between the reservoir and the well. There are many reasons for adjusting choke settings so without additional (and probably highly confidential) information, these numbers are not very meaningful.

i don't know if any conclusions can be drawn from the relative quantities of proppant and water used in these wells

i suspect that the last number on the well identifications, e.g. En-Weyrauch 154-93-1918H-1, En-Weyrauch 154-93-1918H-2, En-Weyrauch 154-93-1918H-3 refer to 3 different laterals off of a common vertical hole. Why he separates them as he does and in random order is a function of the writer's madness or ignorance.