Question-and-Answer Session
Operator
Okay. (Operator Instructions) Okay. Our first question comes from Robert Christensen of Buckingham Research. Your line is open.
Robert Christensen, Jr. - Buckingham Research
Yes, thanks guys. The Haysville, let's come back to that and who is drilling next to you that is kind of horizontal that we should pay attention to?
Brad Guidry
Hey Rob, this is Brad. Just because stay the well...
Robert Christensen, Jr. - Buckingham Research
Okay.
Brad Guidry
Adjacent to our acreage line.
Robert Christensen, Jr. - Buckingham Research
And you are going to do your own horizontal, I guess nearby?
Brad Guidry
That's correct.
Robert Christensen, Jr. - Buckingham Research
When will you spud that well?
Brad Guidry
Later this month.
Robert Christensen, Jr. - Buckingham Research
And should we sort of condemn those first two vertical wells which are loaded up with water or?
Brad Guidry
No, I don't think we should condemn them at all. I think at this point, it's just too early to tell. A part of the program we are doing in this area some like LIFO exploration. The plan was to drill verticals out here, to hold the acreage, the change to drilling the horizontal well is certainly a change to find out what the economics of the Haynesville is in this area.
On a positive note, something else that happened I didn't mention is down kind of in the Southwest part of the County, Southwest Energy announced the rates on one of the wells I think Common Resources was the operator, seven or eight million to say horizontal Haynesville (ph) and that puts us within the limits of Haynesville. I mean we feel very good about productive nature of our block. It's just a matter at this point when those vertical wells decline.
And we really do think a lot of that could function the one wells is out there to work for six months (Inaudible). That we want to a well, see a horizontal well. Obviously when you trying to say rates you can't drill them with funnels in a timeless fashion. So, it shows when you do this.
Robert Christensen, Jr. - Buckingham Research
You'd mentioned that last time this is really confirming your I guess strategy there. Anybody to the North of you guys that has had successful horizontals like in Phenola (ph); just trying to see who is around you that we can cite for success or failure?
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