- Indiscriminate focus on well IP rates and neglect of other performance metrics may result in misleading interpretations of drilling results.
- Two in a row weak IP rates in the TMS reported by Goodrich in June and July, the Nunnery and Beach Grove, contributed to the stock’s subsequent steep decline.
- However, a more careful analysis of these two wells’ performance and its likely drivers does not seem to provide grounds for any major concerns.
- According to Goodrich, high IP rates in the TMS may be driven by the presence of intense natural fracturing or areas with increased matrix permeability.
- However, longer-term well performance may not depend on high IP rates and may prove a lot more consistent across large areas of the play.