Release Date: November 05, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Focusing on slide 8 and your Kallus 34-39 Spraberry Well. Do you plan to offset that? And if so, to what direction and what would be the timing on offsetting this Middle Spraberry well? A: John, this is Mike. We're extremely excited about the Middle Spraberry results. We would like to have more wells like the Kallus well, which is producing 1,500 barrels of oil a day. We plan to delineate further, possibly moving a couple of miles north, south, or east to test a larger swath of our acreage. We expect to conduct these tests in the next quarter or two.
Q: On the Judith 67-5, you've extended your Wolfcamp A further to the east. How do you feel about this expansion? A: Absolutely, John. We're seeing strong results from our wells in the northern extension of Flat Top. Early results are promising, and we expect to provide more data next quarter. Our inventory is strong across our acreage, supporting our 1,150 sub-$50 breakeven wells. We anticipate adding more wells to this category as we continue testing.
Q: On both the Kallus well and the Judith well, what can you take from the log penetrations and the data you got while the well was drilling to help de-risk the locations? A: Jeff, the wells behaved consistently during drilling, and we gather extensive data, including log data and cutting samples. This data supports our confidence in the commerciality of wells across our acreage, substantiating our large inventory.
Q: Does the performance of the Judith well reflect any changes in drilling or stimulation methods? A: The Judith well is a standalone parent well. We continuously optimize our completion techniques, which could lead to better performance. The geology is consistent, and improvements are due to incremental changes in our processes.
Q: Your cost differences versus the central part of the Midland Basin are due to being further up on the shelf, correct? A: That's correct. Our acreage is shallower, requiring less drilling time and materials, which reduces costs. This allows our rigs to drill more wells per year, enhancing our efficiency and cost-effectiveness.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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