Penn Virginia conference call today. They had issues with the 2 rigs on the chickenhawk & jake Berger units...because of the mechanical failures the 4 wells on each, 8 total only came in at between ■■■■■■■■ boepd 24 hr IP each. Way less than the 1500-2500 boepd they thought each one would come in at. Because of this they got rid of those 2 old rigs and got 3 new ones. this will increase the amount of wells drilled in 2018.
Also the Capstick and Shadduck units that were permitted by Devon look to be in trouble. Delago went and leased over half the acreage in each unit site...and with Penn is not willing to pay a lot for those leases from Delago ( Penn was only paying $550-650/acre, when Delago was at $1000) ...could be the tracts that took the $1000 could be shutout of a unit...and possibly orphaned.
Only 300 acres of land was leased from July-September. However since October 1st about 800 has been leased with another 800 in talks. Penn also decided to renew most of its option coming up in 2018 on about 1000 acres it originally leased in 2015. Penn's drilling plan now includes a goal to HBP at close as 100% of its leases as it can get by the end of 2018.
Their conference call is today, so I will see how this matches up with what I have learned over the past several weeks.