Paul McKinney: Yes. Very good. Thank you for that, Neal. Yes, there are bolt-ons. But there are other – and so I got to be a little careful here. We’re predicting that we’re going to see additional assets become available in the Central Basin Platform, the southern part of the Northwest shelf as a result of some of these larger transactions we’ve seen close and/or that are pending. And so many of the operators that have been purchased operate out here and many of the operators that are doing the purchasing and acquiring also have assets out here that have not been their focus and fall in the category that we believe anyway in their halls would be considered non-strategic. So we anticipated them come into the marketplace for sale.
And we’re really excited about this area. We’ve done a lot of mapping. We’ve identified several opportunities out there that we would like. As you may recall, in the past, we have tried to negotiate transactions in the past. That’s how the Stronghold deal started but it ended up being a process that we ultimately prevailed in, Founders was a negotiated deal after a failed sale. And so we’re not opposed to doing that. We are constantly seeking to make acquisitions and that ranges everything from smaller bolt-ons that are just on the other side of the fence from us because it makes a lot of sense. We can continue to play that in the capital programs that we’re currently doing. But at the same time, there’s other areas out there that are very close to our operations that allow us to capture the synergies of our operating team and our expertise.
And so we believe that the pipeline is basically there for the next several years, probably more opportunities than we ourselves can take down. And so we’re excited about it. And so we’ll see how 2024 goes. I think one of the things that we have going for us right now is a little – what appears to be a little bit more stability in oil prices. So if you can stay between $75 and $85 for a sustained period of time, I think you’ll find more people willing to sell. And at the same time, increase the probability of a transaction, just simply because the expectations can – are closer – more closely aligned in a more stable oil price environment. So we’ll see how that goes. But anything from small bolt-ons to large acquisitions that could be as mean as a Stronghold deal and a Founders deal where that were – were for us in the past.
Neal Dingmann: Sure. No, I love the options. And then if I could do one last one. Just on the multi-stack vertical. Again, could you remind me – I mean, again, have you – it seems like you continue to add sort of different zones and you – and the guys who are in the team keep adding, maybe talk about what makes most sense today to target and how that is different maybe than 1 year or so ago?
Paul McKinney: Yes. So a year or so ago, we had – we’re looking at opportunities. If you look at what the Stronghold acquisition the McKnight area has a lot of opportunity but the natural gas is a much larger percentage of the product flow. And so we’ve decided to concentrate more in the P.J. Lea area down in Crane County and also in the Penwell area for the newly acquired Founders acquisition. And the reason why P.J. Lea is so attractive is, number one, the returns are great. We’ve had really good results. And with many of the wells that we drill, we’re adding PUDs. And so we’re increasing reserves by expanding that play out beyond where we originally defined. And so what we’re – what we believe in that area that we have a lot more reserve to add than it was included in the original acquisition.
And so we’re really excited about that. So anytime you can drill and add additional PUD reserves and extend the field and continue to have the success we’re having, is really exciting. Now when you go to Founders, we just got started out there. We drilled three wells there, this last quarter. We’re very pleased with the results. We feel like that program has a lot of running room and so it will get more allocation of our capital than perhaps we originally thought but we’ll see how that goes. But if the robust returns continue in both of those areas, it’ll have – and so again, this year, we’re just – we just happen to have the benefit of wells that came in higher than our type curves. I think one well is right on our time curves, everything else is slightly above.
And so when you have those kind of returns, yes, we might even have to adjust our production going forward for the rest of the year if we continue to have this type of success.
Neal Dingmann: Yes. I love that optionality. Thanks, Paul.
Paul McKinney: Yes. You bet.
Operator: [Operator Instructions] And our next question comes from Jeff Grampp from Alliance Global Partners. Please go ahead with your question.
Jeff Grampp: Good morning, guys. Maybe just to build on that last comment. I noticed in the slide deck, those P.J. Lea and Penwell vertical results look really impressive there. Can you touch on how much more capital can you put into those areas, taking into account, I suppose, infrastructure, maybe inventory management constraints, if there are any? And just how much more aggressive could you guys be, if any, relative to the five, six wells a quarter pace that you guys seem to be at, at least for Q1?
Paul McKinney: Yes. And so I probably need to defer that to Marinos Baghdati.
Marinos Baghdati: Good morning, Jeff. Yes, we have flexibility there to add. We’re still on the Penwell there. Let me back up. On the P.J. Lea area, yes, we’ve eliminated pretty much all constraints in terms of electrical, salt water disposal and frac water to complete the wells. So we can accelerate at whatever pace we want to at P.J. Lea. One of the things that we’re doing there is being very diligent about, like Paul mentioned, adding PUDs because we’re stepping out to the outskirts of the reservoir there. So we’re wanting to see some results before we really accelerate the number of well count there. Over at Penwell, we are still going through some salt water disposal, kind of making sure we eliminate any bottlenecks there before we can say we can really accelerate but we do have capacity to drill more than three wells a quarter as it stands right now.
We’re just really comfortable around that. So we don’t – I won’t say waste capital but just spend more capital than we absolutely have to. Does that kind of answer your question, Jeff?
