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Based on the success of the Little Yellow Jacket 6-1 and the reinterpreted seismic, which shows that the new target formation has a gas effect
Based on the success of the Little Yellow Jacket 6-1 and the reinterpreted seismic, which shows that the new target formation has a gas effect over a large area, management has decided that they can drill at least eight more locations. Those locations include the direct E-W offsets to the Little Yellow Jacket 6-1 and the diagonal offsets. The geological interpretation that the producing formation extends several locations away from the Little Yellow Jacket 6-1 certainly seems reasonable in your opinion. The geologist has shown you how this same signature extended the boundaries of the "nearby" field and did a good job of predicting producing wells. The drilling department has figured out how to get the well cost down to $2 million per well based on using a "manufacturing process" for the eight wells, and it is expected that operating costs and production taxes will total about $200,000 over the life of a well. Based on your "middle-of-the-road" economics, management has revised their budget for this year to include the eight new wells and has approved AFEs for them. They would like to issue a press release (which has to comply with SEC regulations) and want you to certify
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