Operator: One moment for our next question. Our next question will come from Nicholas Pope of Seaport Research. Your line is open.
Nicholas Pope: Good morning, everyone.
Bart Brookman: Good Morning.
Dave Lillo: Good Morning.
Nicholas Pope: I was hoping maybe we could quantify a little bit something you commented on Bart, the €“ you were kind of mentioning progressing kind of more and more, two mile, three-mile laterals. Maybe talk a little bit about that progression, like where maybe 2022 was on average. What you’re expecting 2023 to look like in terms of the size of these wells that you’re targeting in the DJ?
Bart Brookman: Dave, do you have more color on that?
Dave Lillo: I would say just in general terms, we’re really targeting two-mile laterals in the Wattenberg. We’ve had some three-mile packages both on the Wayne which are producing very well. We have a spinny package coming up here later this year that we’re going to be drilling. And that’s another eight wells, three-mile laterals. We also have a plan to test the limits of what we can drill on another formation called or another package called the hand where we’re going to take two wells. And we’re going to really try to drill longer laterals in that area and we’ll see how that goes. There’s another
Bart Brookman: And Dave, when you say longer laterals, are we going to try to exceed three? Is that
Dave Lillo: So on the K2 package, we’re on a couple wells. We’re going to try to exceed three and truly target four-mile laterals. Now we’re going to watch our torque and drag. And if we can get to four miles, we’re going to test and run casing. If we can’t, anything past three will be very satisfied in that. So we will be testing the outer limits of what we can really be drilling. But really, our predominantly target are two-mile laterals right now, moving to two and a half, moving to three where we can. We did that on the CAP, where we had outlined out as a development plan for two-mile laterals. And at the last minute before, we went in for our application. We changed some of those packages to three miles based on the lane results that we were getting.
So, we continue to look to drill further and further. And the economics get better and better because you don’t have your steel costs and the technology with rotary steerables right now is just doing phenomenally well for us.
Bart Brookman: Nick, it’s €“ to put it in kind of high level, the drill team and the operating team have a day to add that incremental 5,000 feet of drilling. We obviously have the steel and the cement work in the completion. But incrementally, the reserves you add relative to the capital, it drives your drilling F&D down; it drives your IRR on the project up; it reduces the amount of surface you need to extract reserves, which is baked in Colorado today; and it also centralizes those reserves on one location for all of our facility design and emission controls that we go through. So all of it points towards just making us better, cleaner, more efficient going forward. So these are the things we will continue to test. And they make sense for our investors, and they make sense for the environment, and it’s part of what we need to be doing to keep driving value.
