Jay Allison: I think we position ourselves right now so that the things that we don’t allow us to protect our balance sheet. I mean, if you just segregate it and you look at the Western Haynesville, like Dan said, these wells will be slower to reach production, so even though we didn’t add a third rig, I mean, as Ronald mentioned, we’re not going to have any issues with our mid-stream quantities. So I don’t see an issue there. And then I think, as far as any obligations, we have to drill the complete wells, we don’t have any obligations there. And we — as we said, we were very, very proactive even in December, much less January, February, to cut some cost. So I think we’re just monitored like that. So, if we need to lay down another rig, if we need to defer completions, all of those things, those are all in the hopper that we’ll look at to do, so — even in a very tough market, I think we’ve got a lot of switches to pull to protect where we are.
And the bottom line is, we’re just so rich in inventory that we just have to protect what we already own, period. We don’t have to breach the 10th commandment and covet everybody else’s inventory. We just have to continue to perform in the Western Haynesville. Like Roland said, I mean, the EURs look solid. Dan said the costs are coming down. It’s still early innings, but we’ve captured a lot of acreage and we’ll just see what the story book tells us in the future.
Leo Mariani: Okay. Appreciate the color.
Jay Allison: Yes, sir.
Operator: Thank you. One moment for our next question. And our next question comes from the line of Noel Parks from Tuohy Brothers Investment Research. Your question, please.
Noel Parks: Hey, good morning.
Jay Allison: Hello, Noel.
Noel Parks: I just wanted to touch again on the Western Haynesville. I was wondering, can you talk a little bit about what kind of science you’re doing on the latest Western Haynesville Wells sort of like, what are you most interested in learning about next, as far as just your drilling practices for instances?
Daniel Harrison: Well, so we’ve — I think we’ve stated before, probably the biggest difference between the Western Haynesville and our core is the temperature in the depth. I mean, obviously, they’re a little bit deeper. And if you just look at the TVDs of the wells, and of course, with that comes temperature, and we’ve just really done a really good job at managing the temperature. And when I say that managing, getting our bottom hole assemblies to perform and stay on bottom longer, faster ROPs, less trips in and out of the hole to get the lateral drill. So we’ve made a lot of gains there. And then just up top, you got, obviously, a longer vertical section to drill. We’ve made some modifications to our casing design. We’ve seen our penetration rates pick up top also.
So you just kind of go attack, you got to attack everything, and we don’t have all of those things just totally kind of maxed out like we do in the core. I mean, the core, we just kind of make some tweaks a little bit here and there, and you pick up a day or two, but we’re picking up bigger chunks down here in the Western Haynesville, just flickering the sling out.
Noel Parks: And are you at a point where productivity of the rock is pretty much not a surprise anymore or are you still learning things there?
Daniel Harrison: I’d say, the rocks turned out — I mean, we know — everybody knows that the gas is there. There were two old wells drilled back in 2010 and 2011 that we got died on. They had all kinds of problems, had very inferior completions put on them, but still with that, they still had a decent amount of gas, so we knew the gas was there. It’s really a matter of economics. And the wells, they do treat at higher pressures when they frac, but they also frac very consistently. The pressures don’t just go up and down and go all over the place. That would obviously make it a lot more difficult. So they frac very consistently, which makes it easier to frac them at the high pressures. So we’ve had pretty good costs there, not cost fluctuation, I mean, consistent on the cost, also on the completion side.
We also have — a few years ago, we started drilling out these long laterals with snubbing units using a stick pipe. You can basically handle higher pressured wells with that than with coiled tubing. And so we’ve had great success in that regard also, that helped us out with these wells. So really I mean the completion side, everything is just clicking along really good. We’ll get some cost savings from our vendor there. And then really, on the drilling side, it’s just the gains we’re seeing, just basically shaving days off these wells.
Noel Parks: Great. Thanks a lot.
Jay Allison: Yes, sir. Good question.
Operator: Thank you. One moment for our next question. And our next question comes from the line of Paul Diamond from Citi. Your question, please.
Paul Diamond: Thank you. Good morning. Thanks for taking the call. Just a quick want to touch base on some of the D&C costs in slide 15. Just wanted to get an idea of you guys view on how much of that shift down and drilling is — was deflationary or how much should we think about that as sticky and kind of inverse for completions? How much should we expect that to be sticky going forward?
Roland Burns: I think — so going forward this year I think we’re still, obviously with the activity, we’re going to still see the deflation occurring. I mean, we still are seeing maybe another 10% cost into this year versus last year. Say more on the completion side, there is a little bit more predictable, I would say. Just need to get — it just going to basically be lower prices from everybody. The drilling side, because the Western Haynesville is going to be a big component of our program this year, it’s also going to be on the drilling side just increased performance, less days to TD for the cost savings along with just vendor pricing coming down.
