Interview: Michael Filloon, Heart Streat LLC
Michael Filloon of Heart Street LLC believes the industry needs to start looking at rig rates differently. In fact, not at all.
“Everyone looks at rig rates when they really shouldn’t,” Filloon said. “They should look at completion crews. They pop those holes in the ground and then they wait.”
He sees where those holes could really become beneficial if a short squeeze hits the oil market.
“If we get our short squeeze, man are we going to get some production out of those wells quick,” Filloon said. “When we get all those DUCs, and they are drilling them, I think they are just waiting for the most opportune time to get that production on and since they can do it so quick, they got the advantage.”
Filloon transitioned into New Mexico, citing several EOG wells and their production results.
“Probably a break even price of $20 on those,” Filloon said. “They blew the well head off, those are huge numbers.”
He added that the low breakeven price was partly due to geography, but mostly due to innovation.