Fayette and Lavaca County TX Oil Activity

Post frac flowback - essentially getting the well to be flowing at a rate that is not negatively impacted by frac fluid production - could take weeks if not months (e.g. Permian Basin Spraberry wells take 3-4 months to “clean up” and get to steady O&G rates. This is all formation and area dependent.

A note about the volumes of frac fluid we are talking about - although we don’t know the frac details on the Blackshear, it is safe to assume that operator is pumping about 100 bbls of fluid per foot of lateral (this has become the norm for frac fluid pumping in today’s frac world).

10,000’ lateral and 100 bbls per foot = 1 million bbls of fluid pumped.

That’s a lot of tanker trucks @ 150-175 bbls per load. And lots of disposal costs for that fluid (thinking $2-$3 per bbl).

Those frac storage tanks (trailers / skids) can vary in volume from 150 to 500 bbls per tank capacity. Thinking that there are 400-500 bbl tanks on location to hold the flow back fluids before they can be trucked off

Not all of this frac fluid will be recovered - some is always “lost” to the formation for various reasons.

Also need to consider that frac may have tapped into some formation water that will then start to contribute to the flowing stream of the well