Thread regarding Devon Energy Corp. layoffs

Most of the kingfisher Felix wells make 50% water and 50% oil.....what high water cut are you talking about? The meramec might be a Mississippian aged rock but you can not compare it to the Mississippian play. And the wells have plenty of has to gas lift for the first couple years.

I agree that the 75% NRI sucks. But for operational and tax reasons it is much easier to do business in Oklahoma than say ...New Mexico. Still $20,000+ per acre seems high. Too bad Devon didn't get into the play earlier. They were too busy drilling sh*t wells around Stillwater.

I would look more at how the deal was done.

1. Felix has retained orri's on the entire package burdened it down to 75% nri

2. Water disposal issues. This is a Mississippian play and will have high water cut

3. Mississippian has steep declines. Pull protection and look at 12 month rates on the wells.

4. Lower GOR wells make typically less than 3 million on the IP. Long term you need the gas to keep the oil going.

5. Better areas in Oklahoma: 2N-4W, 3N-4W, 3N-5W, 6N-6W, 7N-5W, 1N-5W- that's core scoop mostly controlled by continental and newfield. The wells here far out produce the stack. Don't believe this pull it yourself

It's not a bad deal, but it's by no means an eagle ford or scoop no matter what the top

Brass has to say to push the deal with Wall Street.

It will be huge if oil prices ever recover.

Horrible because the acreage is bad, or because Devon paid too much ?