According to Legacy Reserves (LGCY), who ows a 5% non-op working interest in Firewheel's Cline Shale acreage, Firewheel's second Cline Shale well in Sterling County was doing 800 bbls oil and 2 MMCF a day after only flowing back for one or two weeks. That's a very high oil cut for only flowing back one or two weeks; normally you don't see your highest production for a month or two after the frac completion. This well is about 10 miles south of Lynden's farmout out of the Mitchell Ranch with CHK. Firewheel has also drilled a well in Mitchell County on the norhtern side of Lynden's Mithcell Ranch Lease that is awaiting completion. Here's a link to Legacy's 3Q conference call transcript.
Devon has also had positive results in Sterling County, which is directly south of Mitchell County. Their Virginia City Cole well had a 30 day average IP of 450 BOE a day. See their 3Q12 earnings conference call. Not bad for a first generation well. They also have 2 wells permitted, one of which that has been drilled, directly offsetting in contiguous sections on the northern boundary of Lynden's Mitchell Ranch Lease. I have to repeat that, Devon has drilled one Cline well and is planning another in sections that are contiguous to the Mitchell Ranch Lease. They also have a Miss. well permitted nearby several sections to the north.
To top it off, Laredo has a horizontal Cline well permitted in the northeast part of Mitchell County. There's a lot of Cline drilling that's going to take place on all sides of the Mitchell Ranch and early results are very positive. No wonder management continues to buy even after the recent run-up.