Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Welles Fitzpatrick - Johnson Rice.
Welles Fitzpatrick - Johnson Rice
I was wondering if you could take us through sort of the future plans on that second rig. How long it’s under contract for? If you think that you’re going to continue to drill in the Gates Ranch area with it. Also, what you’re going to be doing with that first H&P rig? Whether or not that’s going to be moving directly onto the Vela, once it’s released from the Springer Ranch.
Jim Craddock
Our plans are at this point, we will release the H&P 183 Rig that was on the Springer Ranch well, while we gather some data there. So, we won’t move it immediately. As far as, the plans for the rig that’s on the Gates Ranch, we are going to kind of see how our results go there, but right now, both rigs were just month-to-month contract. So, there is no extended contract on either rig.
Welles Fitzpatrick - Johnson Rice
In that Gate section, have you guys been able to look at public log data? I think, generally, the consensus it’s a little bit more liquid heavy over there. What are your thoughts on the difference between those two sections that you’ll have?
John Clayton
I know you track our competitors pretty closely, but one of the things we are intrigued by is there appears to be several different parts to this play, dry gas all the way to an oil window part of it, if you follow it up the Gulf Coast. We like what we are seeing from our competitors over in the Gates Ranch area.
We are not necessarily down when you can get 70 bucks a barrel for your liquids, and these things have pretty high yields on them. One of the things I’ll point out that our industry has to watch is what the recovery factors are for any of these reservoirs that make liquids. So, the longer we can sustain, high yields on our production profiles as industry, I think the better off we’ll be. We are encouraged by it.
I think you can notice from our notes we are about 3000 feet shallower than we are in our Springer Ranch, with that, we do anticipate, we’ll probably have a higher liquid load, but with an 18:1 oil to gas ratio right now. It’s something that we’re not down on, that’s for sure.
- To read the full transcript on Seeking Alpha, click here »
