We're not in the Cline shale....

Most of that is deep drilling (10k feet) requiring plenty of capital.....

The Cline yields 40o to 45o gravity crude oil and is 9,250 feet below the surface of portions of 11 West Texas counties (Scurry, Fisher, Howard, Mitchell, Nolan, Glasscock, Sterling, Reagan, Irion, Coke and Tom Green).

The Cline reservoir is believed to be 200 to 550 feet thick, the Oil and Gas Journal story stated.

Apache, the largest acreage holder with 520,000 net acres, has identified more than 34,000 drilling locations in the Permian Basin, including 2,321 horizontals in the Cline Shale. Apache will spend $7.6 million per well to drill and complete based on drill laterally 6,800 feet and 15 hydraulic fracturing stages.

The Oil and Gas Journal reported that Apache’s Barracuda 45-2H was spudded in June 2012 and it had a peak flow rate of 810 barrels of oil equivalent per day that had a 30-day average of 623 barrels of oil equivalent per day. It was drilled with a 3,800 foot lateral using 11 hydraulic fracturing stages.

Devon has 500,000 net acres leased, and it believes the Cline contains 3.6 million barrels per square mile. Most (85%) of the hydrocarbons are crude oil and natural gas liquids.

Devon closed a joint venture agreement with Sumitomo Corp. of Japan in 2012 in which it agreed to invest $1.4 billion for a 30% interest with $980 million of the total to be a drilling carry financing 70% of Devon’s expenses.