Question-and-Answer Session
Operator
Yes, thank you sir. (Operator instructions) And we will take the first person from Michael Jacobs from Tudor, Pickering, Holt.
Michael Jacobs – Tudor, Pickering, Holt
Good morning all. Congrats to both Lee and Gary.
Lee Boothby
Good morning Michael.
Michael Jacobs – Tudor, Pickering, Holt
I wanted to focus on the Woodford, just thinking about longer laterals, can you talk about any operational challenges that keep you from going to 5000 feet and beyond?
Lee Boothby
We have George Dunn here. I will put that call to George Dunn, he runs our Mid-Continent operation.
George Dunn
Now there is from a drilling perspective, it shouldn't be a problem getting up into the 9,000 to 10,000 feet. Maybe in deeper areas, there maybe some limitations but it will still be close. Really, the only challenge comes in completion cleanout but that is – will just be related probably – when we get out to 9,000 to 10,000 feet there maybe some cost things we have to do that cost more to get it cleaned out but it won't be significant. So we don't see any major hurdles to get over.
Michael Jacobs – Tudor, Pickering, Holt
Got you. So, 10,000 feet is kind of the cap on how long laterals can go?
George Dunn
Well, yes, I mean, really there is still a limitation of the regulations although going beyond 10 will – there will be new challenges to do that, but that is not a limiter. It is more the regulations right now.
Michael Jacobs – Tudor, Pickering, Holt
Okay, and now that you have got a couple of 100 wells online with few years of data, are you considering modifying your completion techniques?
George Dunn
We modify our completion techniques all the time, and it has been one of the drivers in both driving costs down and optimizing recovery and production. So, that is a continual thing that we do.
Michael Jacobs – Tudor, Pickering, Holt
Thinking about maybe the amount of profit [ph] that you are using or the amount of water and how we should think about costs, representing two-thirds to three quarters of per well cost. If you could update us on anything you are seeing on the completion cost side or anything that you are doing that might further drive down costs that will be helpful?
Lee Boothby
Yes, we continue to drive down fluid volumes as Lee was mentioning, profit generally we are trying to increase somewhat but the fluid volume itself reduces both the cost of pump the job and the cost to clean up the well and dispose or do something else with the water. And so there are disadvantages on both ends of that. In addition, we are seeing some cost reductions coming through the service companies already on that end.
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