Hz Multi-Frac’ wells are required to exploit this prospect. Sansum has recently sought the drilling estimates below, including seismic. Assuming the pipeline to the 1-19 is in service, the Hz payout models of under one year are compelling. Establishing tie-in infrastructure is the payout burden of this summary’s operational proposals but once established will invite Hz well development.
Phoenix Payout Scenarios (all assuming 100 BBL/mmcd liquids component) August 8, 2018 prices, $86.35 Cond; $1.82/mcf Gas/net $71,35; $.47/mcf – 5% GORR
The Sansum Phoenix package also includes a liquids-rich mature Viking well at the 7-21 facility location. It has been produced intermittently over the past few years due to low natural gas prices. It was most recently produced from May 29-July 13 of this year and flowed 37 million cubic feet of gas and 1603 barrels of NGL’s until liquid loading occluded additional flows. Used as a supplement to the 1-19, intermittent or lift-assisted production from the 7-21 will increase the facility scale of economics but will be increasingly helpful when natural gas prices rise any amount.