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Environment & Energy

GitRDun

(1,846 posts)

1. This has been a known fact in the industry for a long time

Reply to GliderGuider (Original post)

Thu Oct 2, 2014, 02:54 PM

Oct 2014

If you are not in the sweet spot, the wells don't pay out. Greater fool is correct.

Athlon has been buying up vertical wells in the Permian Basin to put together a big horizontal play. The value they pay is a lot more than the value of the vertical well's production.

Athlon buys up assets. See the Barclay's presentation here. Located in webcasts and presentations link. Lots of acquisitions.
http://www.athlonenergy.com/

Encana moves in and buys Athlon for $7 billion.
http://www.naturalgasintel.com/articles/99862-encana-newest-permian-player-with-7b-athlon-deal

Meanwhile, most of the small independents, who survive on positive cash flow from their operations, stay away.

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Fracking claims another victim [View all] GliderGuider Oct 2014 OP

This has been a known fact in the industry for a long time GitRDun Oct 2014 #1

I've read that the natual gas bidness pscot Oct 2014 #2

Somebody got very rich and some bodies are going to get very "job-poor". Nihil Oct 2014 #3