NBL
#Okay.
Let me start on Tamar with what the announcement on Tamar where we reached an agreement to sell 3% and I think that's a great marker.
That's a good marker for the asset.
I think, as far as the timing, I would expect timing of that to close by the fourth quarter.
So definitely before year end.
And we'll just ---+ we will obviously announced that as it happens.
I think on the midstream IPO, that'll be ---+ we've kept this one alive so we've kept that available as to enter the market when the market conditions kind of dictate that.
So we'll ---+ that's about all I can say on that at this point but that's something we're keeping alive.
I think on Mustang, that's an area that's probably our next IDP area, <UNK> can mention a little bit on that but I think it just the initial results very encouraging there.
Yes, <UNK>.
I think very happy with the first results.
It's like we said a ten well pad, seven of which tested enhanced completions.
It's one part of the IDP, obviously with it only being one pad ---+ so but very encouraged with what we've seen so far.
It's only coming on right at the end of 2Q so a bit early to start putting numbers out there.
But I think when you look at how much the enhanced completions have improved the performance of the wells and Wells Ranch at East pony and again that's on one of the slides in the pack and you can see how much of lift we're getting from that.
You can see why we're excited from similar levels of improvement in Mustang with just the first pad there.
Yes.
I think we've said it for quite some time that in the DJ Basin it takes three to four rigs to keep production flat.
We've been running two obviously for a while now balancing part of that is clearly the fact that we've seen better result from these enhanced completions.
I think in 2Q you had the issues that you mentioned, the turnaround at Wells Ranch central processing facility as well as some third-party gas plant downtime of that impacted volumes as we mentioned.
And you've reiterated there we've also held back on some work overs and repairs especially on vertical wells that just don't make sense in this price environment, those have impacted vertical volumes.
I think when you look at our level of activity going forward with the type of performance we're seeing on these enhanced completions, even with two rigs we are probably flat on horizontal production through the end of the year, vertical will decline a bit so overall you'll be declining through the end of the year as we kind of suggested in the past.
But horizontal program is holding in there quite nicely with just two rigs.
I think to that point, <UNK>, and it's worth emphasizing and <UNK> mentioned it is we are actually on the horizontal program doing as well or better with the amount of capital that we're spending then we would've laid out before.
What's masking it a little bit are some of these decisions which are the right economic decisions and the fact that everybody is looking at everything as a business decision on some of these vertical wells.
And some of that production can be brought back at a later time and the right price environment, right now is not the right price environment to be trying to maximize the vertical production up there.
We've got plans to test it.
We've got one third Bone Spring well that will spud around the end of this year.
We won't have any completions on this year, but we will towards the end of the year.
With everything we've seen from offset operators and our own mapping, we believe that the majority of our increase we would consider probably tier 1 perspective for the third Bone Spring.
Yes.
I think we've done so far is Wolfcamp A and really the upper part of the Wolfcamp A.
As we get into the latter part of this year, as I mentioned, we will test the Bone Spring, we will test the lower Wolfcamp ---+ or we will spud a lower Wolfcamp A, probably won't be on this year.
So we will continue to delineate through that vertical section.
I think it's probably a bit early to zero in too much on how many wells or what spacing we think will ultimately end up at given that we've only brought our third Noble operated well on so far.
I think it's a pretty wide range we're looking at right now when you consider all the way from the third Bone Spring through the upper A, the lower A and maybe even into that B could be as many as 15 to 25 wells.
I know that's a wide range but give us a bit more time than three completions and will narrow that going forward.
The Delaware Basin ---+ I don't know the exact number, <UNK>, I mean what we've seen in the DJ Basin with those fracs is its $300,000-$400,000 savings from slick water it's probably along the same order of magnitude in the Delaware.
Hey, <UNK>.
I think <UNK> touched on it we just need to get more wells on production.
We need to get more time and history on the Wells we have on production.
Some more extended production periods, not only ours but even the offset operators, even some of the more recent wells there that have been highly encouraging.
We're not going to rush to revise the type curve and then have to rush to revise it again.
We will get a little longer extended production period, both for ours and offset operators and watch them both and then get some more wells online.
I was going to say I think what's encouraging for me, again, even though it's only three wells, it is three wells that are spaced across the acreage and all are above the type curve which is obviously intended to be an average of the acreage.
So I think we'll continue to see improvement and the completion designs there and hopefully we get a few more than three under our belt we can talk about what that 700 goes to.
Right.
And to the same extent we're looking at that same opportunity in both where their both well outperforming the type curve.
So we have to take that into account as we look at setting our plans for next year.
Yes.
And in the Delaware ---+ you look at a well in the Delaware that 75% above the type curve in the early days, obviously huge impact on the economics of that.
But as <UNK> points out, we're seeing very nice improvements in economics in the Eagle Ford too which we are already very robust.
And when you look at the 500, foot spaced wells that are in line or above with 3 million barrel type curves it was based on spacing twice as wide as that.
When you look at Northern Gates Ranch where we are above a 3 million barrel type curve which is three times what we assumed when we did the acquisition.
And when you look at Briscoe Ranch where we are significantly above the type curve that we assume that the type of the acquisition and we haven't even brought those enhanced style completions to all the areas yet, I think there's tremendous upside potential in both of these areas that will be very economic even in this price environment.
Well, yes, I think extremely glad we put the work in that we have over the last couple of years.
I think we're doing the things we need to do.
And I'm comfortable we're doing the right things to stay out in front of this.
We've stayed focused on, engaged on being out in front of and defeating any potential ballots if they get enough signatures.
And we'll wait and see how that plays out.
But either way were staying out in front of this.
The nice part is we've built a strong coalition in the business community up there.
You've got landowners, farmers, homebuilders that all were affected by this and greatly affected if something like that went through.
So they are out in front of this also and working hard on this.
I think the governments been supportive of what we're doing and very engaged in this effort.
So the other part of it is the public education has worked.
I mean, you can see that from a polling.
You can see that from the results.
Their increased support, awareness and understanding.
So again I'll go back to where I started with, we're doing the right things and we're in the right position to stay in front of this.
As I said, it'll be ---+ we'll test drill a third Bone Spring and probably a lower Wolfcamp A later this year, half dozen or so I additional completions that we will bring on production this year, I think are all Wolfcamp A upper.
And as far as arial testing, they're all probably in that east central part of the acreage block for the rest of the year.
Yes I mean I'd say for both of those we baked in some of what we're seeing but given the early days on both of those, we probably been a bit conservative in the guidance.
Well, I think as I mentioned earlier, we're working through the process now and obviously you are seeing a lot of volatility on the pricing still.
We've seen even 2017 outlook for prices continue to change but we'll ---+ the benefit we have is we've generated excess cash this year.
And as we look at that and as we look into next year, we'll look at our cash flow projection and what other opportunities we have to support cash flow next year on various things.
So we'll look at the whole picture of things and setting the budget and focus our capital activity on what we need to do to support the Leviathan development based on wherever it is and most of the rest of it will start with our onshore activity and how we allocate between the different plays based upon the things we talked about this morning.
It all depends, <UNK>, on how long the laterals are and how many wells there are on the pad so it's hard to give you kind of an average number.
What I will say is that it did push some completions from 2Q into 3Q.
We're addressing some of that by bringing a third frac crew out to help bring some more wells on before we get to year end.
But it's going to vary quite a bit based on how long the laterals are and how many wells there are on a pad.
And it goes to really more how many stages or what the cluster spacing is, the stage spacing is on the wells probably even more than the sand concentration.
Well, I think when you look at the debt ---+ we look at a number of different factors and we haven't set a specific number.
The nice part about that is with how we've continued to build liquidity somewhat this year it doesn't become an either/or discussion from debt versus investment in the business.
I think we will have the abilities to pay down some debt by the end of the year and at the same time not reduce our capacity and maintain our capacity to be opportunistic, whether for accelerating opportunities, in the portfolio ---+ the environment dictates or if there are other new opportunities.
So the nice part about is it we've maintain the capacity to look at all those spectrums.
Good morning, <UNK>.
Well, I think, we've been following the plan we laid out for the year as we continue to learn, we will continue to adjust especially as we are looking into next year.
But as <UNK> said the performance has been better than we would have even expected and the nice part about it is it's been across the spectrum of the acreage.
I think when you look at other opportunities, yes, we're looking at the other opportunities at the right opportunity for the right price comes around we'll move on it.
But in the meantime we got 1200 locations on our position that we're focused on now and to your point, the extent and how we manage that and how we set up the program is important.
As <UNK> mentioned we've kind of model this a little bit after some of the DJ portion where we use the IDP concept with what the facilities in and we make sure we're optimizing the value not just the value for this year but the value for the whole play.
I'd say we're definitely not at any disadvantage.
I think from what I've seen and our ability to execute and our ability to take advantage of the learnings and take advantage of the learnings quick, we're in a great position.
I think on the three projects, the deer point we brought on three major projects over the last year on time, performance has been as expected or better, and on cost.
So again that is a testament to our major project execution that is showing up here are very visibly in the Gulf of Mexico over the last year.
I think ---+ no.
As we look forward, here, I would expect some decline now that we've had Dantzler and Big Bend on for about a year.
That's in line with what we said originally.
Gun Flint we'll see to what extent it ramps up after we get it ramped up.
And as I mentioned before we've built in some downtime expectations from some of that onshore facility coming back online or some of its downtime and some storm downtime near term.
So everything is performing as expected out there, at least as well as expected.
Yes, thanks, all, for joining us today on the call as well as your interest in Noble.
Megan and I are available for calls all day today.
Appreciate your time.
