Looking Ahead: Number of Wells Coming Off Confidential List to Increase Significantly -- As Much As 50 Percent Increase -- Bakken, North Dakota, USA

As a rule of thumb, this past year one could expect 90 wells/month to come off the confidential list --> 2.9 wells/day. I could be wrong, but I don't think the average reached 100.

Starting in January, 2012 (six months from July, 2011, when weather improved and flooding decreased), we will start to see an average of 4.5 wells/day coming off the confidential list.

2.9 to 4.5 represents a 55 percent increase in the number of wells coming off the confidential list each day. That is quite significant, at least in my mind.

Production will increase proportionately, but of course not 55% due to older wells bringing the average down.

When we get to 166 wells/month, the number of wells coming off confidential list could be as high as 5.4 wells/month. It should be noted that not all wells are placed on confidential list.