Yoplait might have read thousands of news releases, but he obviously did not read this one very closely.
- The reason they stopped the well for high pressure was because the well was so overpressured. 65% overpressured, compared to less than 40% for most of the major shale plays. This is awesome, and is an indicator of light oil.
- Porosity of 14%, compared to 6 to 11% for most of the major shale plays.
- They didn't mud up quick enough for some of the kicks and got 280 bbls of oil in the shakers. This means that with very little pressure drawdown, they got 280 bbls of oil from an unstimulated shale reservoir. They would have corrected the problem in a few hours, so this is a major flow rate.
- On an adjacent block, an Hz well was drilled into the fractured shale. The unstimulated Hz flowed at 5000 bopd of 14 API oil. CNE is twice as deep and appears to have light oil.
All this points to a world class shale play. In my opinion, it will be the shale results that move the stock this year.