Devon to reduce Cline rig activity

According to the Tyner Land Solutions twitter account Devon Energy, the largest operator in the Cline, revealed in their conference call that they are less than pleased with their well data results and are taking steps to reduce their presence in the Cline.  It sounds like they have had some success, but also some costly failures and they're going to trim operations to go with what works.

Really interesting updates from Devon on their #Cline program today in their Q2 conference call. Summary to follow: $DVN
— Tyner Land Solutions (@TynerLand) August 7, 2013

"Yeah, on the Cline, we’ve decreased our rig activity right now. We’ve seen a lot of variability on the Cline." $DVN Q2
— Tyner Land Solutions (@TynerLand) August 7, 2013

"we certainly have our concerns about the Cline, but we’re also getting additional 3D.... We’re looking at our completion techniques." $DVN
— Tyner Land Solutions (@TynerLand) August 7, 2013

"For the short term, we’ve decreased down to two rigs…"
— Tyner Land Solutions (@TynerLand) August 7, 2013

"…doing what I call mini developments in Sterling County, seeing how low we can get the well costs to have economic developments…"
— Tyner Land Solutions (@TynerLand) August 7, 2013

"In the meantime, we’re studying the well results we have to date. We’re getting 3D. …the results have been pretty mixed so far." $DVN
— Tyner Land Solutions (@TynerLand) August 7, 2013

"So we need to do some studying here before we go back out there with a significant program."$DVN
— Tyner Land Solutions (@TynerLand) August 7, 2013

Devon's report dove-tails off what I said at the end of my blog post yesterday.  We are seeing increased drilling permits issued, and some increased tax revenues in cities around the Cline, but what ultimately matters is whether Cline wells deliver the oil that analyst claim is there.  Hopefully in the grand scheme of things today's news will only represent a "one step back" in Cline development, and we'll see "two steps forward" soon.