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Harry Johnson

Harry Johnson
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  • Apache Joins Chesapeake And Sandridge At The Mississippi Lime Party [View article]
    Mississippi Lime horizontal is Mississippi Lime vertical on steroids. SD is drilling one salt water disposal well for every four producers. Average water cut has been reported to be 90%, but I haven't verified that. Don't believe the Miss is subject to de-watering such as some of the Oklahoma Hunton plays. That is why the CHK and SD royalty trusts should be viewed with caution. An operator with 10% of the revenue stream and 100% of the operating costs in a well with rapidly decreasing production and ever increasing water disposal costs has his work cut out for him. Investors in those trusts need to monitor lease and well expenses if possible and bail out if the trend is toward premature abandonment. Don't believe CHK or SD will operate a well at a loss just to protect royalty owners (i.e., the trusts).
    Jun 22 12:03 PM | 1 Like Like |Link to Comment
  • Apache Joins Chesapeake And Sandridge At The Mississippi Lime Party [View article]

    I have no clue as to what low permeability reservoirs will ultimately deliver. Moreover, I carry the negative built-in bias of those of us who wrestled with low perm rocks during our entire careers. I was just passing along the findings of a respected researcher who has extrapolated the facts as they stand today.

    Given truth serum, I would probably opine that low perm horizontal wells will ultimately deliver about the same overall economic results as the thousands of vertical low perm wells. But, like I said, I carry the burden of an experience induced bias.
    Jun 21 12:10 PM | Likes Like |Link to Comment
  • Apache Joins Chesapeake And Sandridge At The Mississippi Lime Party [View article]
    Devon Shire, re your next-to-last paragraph:

    At a presentation earlier this year, Michael Warren, Director of Research at Hart Energy, projected an increase in domestic oil production of 5.5 million barrels/day by 2020 if drilling activity continues at the current level. Taking 5.5 million b/d off the table will put a dent in world oil prices and will be bad news for companies and investors who plan as though trends go on forever, but it can only be good news for the United States' economy.
    Jun 20 06:32 AM | Likes Like |Link to Comment
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