Here is Novi's take on longer Permian laterals, just out.

I need to make sure people see this, and a comment from Christine Guerrero on LinkedIn about longer laterals from Rystad.

You can read about it here on Lindkin: https://www.linkedin.com/posts/ted-cross-tx_long-laterals-are-more-important-than-ever-activity-7265006855918149632-L29u?utm_source=share&utm_medium=member_desktop

Strong economics is qualatative. No well costs mentioned for us to make up our own mind on economics; just a reminder that gas and gas liquids is approaching 50% of the production streams from new Permian wells and WaHa is still a negative number.

Black lines are plus 3 milers and those EUR's are lower, as I have suggested many times.

No word on how many of these super long laterals there are to drill in the Midland Basin, or out West...not many left, IMO.

Improved per-well productivity means on an IP90 basis, as I pointed out in my post...not by EUR. Higher up front cash flow gets to payout faster, but does NOT necessarily make more money in the long term. Novi likes 2 year payouts as that is the basis for much of their remaining drillable location predictions. So, it likes longer laterals because they pay out faster.

I stayed in the oil business for over 50 years, as a producer, never borrowing money to drill a well, ever, by liking EUR's and ROI's. I liked the 25:1 ROI's the best !😁