Just had a good conversation with Sean, he tends to answer the phone when you call the right number, my bad. As per our conversation the Stockton #2 is pumping and the water cut is coming down. The reason we are seeing a water cut is because of the acid job. This is normal after completion. Most all wells have water at first after completion and the after the well goes bottoms up you find out what the true production really is. I have heard that we sold some of our percentage in the Stockton wells. According to IR this is correct. We did not sell this percentage to get money to complete the wells, we sold some percentage as was promised under the new company plan to acquire a lease, improve the lease, and sell a certain % of the well for profit. We basically sold future production and now we don't have the chance of the well sanding up, loading up, etc... IMO this is a smart move as long as we got good money for it so I will say the plan is smart because I don't know what kind of money was involved. Lets not beat Sean up over the K's and the Q's, he has no control over these docs. I say we let management know about it. So, management listen up. IF YOU DON'T HAVE ANY PLANS ON KEEPING YOUR PROMISE JUST KEEP IT TO YOURSELF. Maybe they already know this because they have been VERY quite lately.
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