Most Interesting Story All Week? -- February 12, 2019 -- Mexican President Flip-Flops -- Will Allow Fracking

There is increasing talk that Pemex could fail.

When Mexico's new president was running for office, he said he would ban fracking in his country -- even though the prolific Eagle Ford in Texas extended south into northern Mexico.

Yesterday Argus Media reported that President AMLO has had a change of heart. He will allow -- or should we say, his regulators will allow -- Pemex to frack .... drum roll .... four wells.

Why the change of heart? AMLO says the technology has gotten better, has gotten safer. LOL.

Some data points:

• Pemex will invest up to $203 million under the two-well drilling scenario.

Let's stop there.

Let's do the "cut and paste" from the article:

Pemex will invest up to $203 million in the exploration plans under the two-well drilling scenario, with the potential to incorporate up to 201 million boe into national reserves.

So, the data points:

• two wells
• $203 million (am I missing something here?)
• two wells
• 201 million boe 

Back-of-the-envelope: I don't even want to think about it. LOL.

For newbies: in the Bakken,

• about $8 million / well
• EUR for a single well: 1.3 million bbls crude oil

Other data point from the article:

Mexico's 3P oil reserves dropped by 40 percent to 25.5 billion boe from 42.2 billion boe between 1 January 2014 and 1 January 2018, according to the annual reserves report, according to data published just last week.