We received notice from an attorney about dismissing increased well density. Does this mean the well Echo drilled is no good (which is what the royalty checks would indicate) or they just changed their mine to increase it?
Charlie- A little of both is probably the correct answer. Now that Echo has some production time for the well, the reservoir may not be responding as anticipated so they have decided not to drill more wells. An awful lot of these wells aren’t economical at $45.00 oil and $2.00 gas. Drilling is coming to an abrupt halt.
Todd M. Baker