Did Encore Just 'UP' Their Estimates of Potential Recoverable Oil by 3.5 Times?

I don't have time to post all the links right now, but this is very, very interesting.

Working backwards from NDGS numbers, I calculate that the  NDGS estimates about 200 - 350,000 barrels of oil as their estimate of ultimate recovery (EUR) / section in the top five (5) North Dakota Bakken counties.

And yet, the operators are estimating 400,000 to 750,000 bbls EUR for each of their wells, and now they are putting in more than one well per section.

Do you see the disconnect?

Here's the interesting paragraph from the earnings report posted by Denbury (Encore):

Based upon recent drilling results and technical data in the Bakken area, the Company has re-evaluated the potential barrels of oil equivalent recoverable from its approximately 300,000 net acres in the Bakken.

Based on these updated internal engineering estimates, the Company projects its total potential recoverable BOEs in the Bakken could be approximately 350 MMBOE, of which approximately 29 MMBOE is considered proved at mid-year 2010, up from approximately 100 MMBOE as previously estimated by Encore, of which approximately 84 MMBOE was considered unproven upside potential.

This analysis is based on an increase to three wells per section per reservoir with varying estimated recoveries ranging from approximately 200,000 BOE to 675,000 BOE per well (on a gross basis), depending on location and expected horizontal length (5,000 feet or 10,000 feet).

The estimate excludes a portion of the Company’s acreage in the Almond and Northeast Foothills area (approximately 34,000 net acres) that is North or East of prior unsuccessful wells in those areas.

So, Encore suggests as much as 675,000 bbls per well with three wells in each section. That's a heck of a lot more than 200,000 to 400,000 bbls per section. If I'm confused, I'm sure someone will write to tell me.