Penn Virginia Corporation, Q4 2008 Earnings Call Transcript

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2009-02-12 18:34:07.0

Tags: Well, Call Transcript, Earnings, Recruitment & Selection, Human Resources, Workforce Management, Seeking Alpha, Penn Virginia Corp.

Question-and-Answer Session

Operator

Thank you. (Operator Instructions). Our first question comes from Scott Hanold from RBC Capital Markets. Please ask your question.

Scott Hanold - RBC Capital Markets

Thanks good afternoon.

Jim Dearlove

Hi Scott.

Scott Hanold - RBC Capital Markets

Baird, you were talking in some detail on some of those Haynesville and the data points that you had there. And you did indicate obviously there was some issues with drilling some wells that probably constrained the rate you could have gotten out of there. When you talked about I think it was the 5.3 million a day average over eight of the wells. Can you talk about what's the subset of the wells the ones that you did not have as many problems with kind of what were some of the averages there. So if you are at 5.3 some of them coming closer to say 6 or 7 million a day?

Baird Whitehead

Yes, yeah the two wells we did not get stimulated in both of those wells I think, this may not be exactly where it is relative out of eight stages. We did get six of them done. I think in both wells. So, intuitively of course its going to have a big effect on your initial rate. So, the 5 Bcf, 6 Bcf numbers I gave you. What that assumes is sort of first day rate of about 7 million a day on an average for the first month of about 5 million a day. But we think that considering we had problems on the wells. And the wells that we worry we get put back together in frac, we had to kill these things and things like that.

So there is some potential damage to the frac job you just put away all these other kind of things I am getting more details and I am sure you want. But every time you get into this kind of killing and well control operations and being sensitive to these kind of pressures. You tend to err on the side of being conservative and there could have been some potential damage to some of the frac jobs we already have been put away.

That's why we feel comfortable with the initial rates or more. But at this point of time we have just taken the I would say a more conservative approach and I think I know it has been batch of wells released by the industry in the 10 to 15 million a day initial rate. I think our wells are probably in that same category.

 

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