Post by
tire9 on Dec 01, 2011 10:43am
One half right again
Another good post by G40.
I consider this a speculative type company with a large land base to develop. 10 years of drilling ahead, with development costs about $4.5 M per well. Payback about a year on the best producers. Average to higher maintenance and production costs. An extension of the BHL reef that is being developed with HZ drilling plus fracking. It seems that the project is working quite well and is profitable with a long production time line. Good management is essential for the best development strategies.
Alberta is a mature oil & gas producing area. don't need lessons on reserves and resources or basic business sense.
Comment by
good40 on Dec 01, 2011 11:08am
Tire9, it doesn't matter where you operate, you need a business plan that makes sense. What kind of production numbers are you using for their " best producers " ?
Comment by
tire9 on Dec 01, 2011 11:44am
Sorry G40-- as soon as I see a poster give out a whole bunch of numbers, I back off--useless I think.
Comment by
good40 on Dec 01, 2011 12:04pm
Here's the thing tire9, you said that development costs are around $4.5 million per well, with payback in about a year for their best producing wells.You obviously have a figure for their best producing wells... I don't believe you made up the statement. What figure are you using for " their best producing wells " ?
Comment by
tire9 on Dec 01, 2011 12:39pm
Generalizing I guess, Try page 15,16,20 on presentation and go back on the NR's for more info. That's about the best answer I can give you. If you are just trying to be a $$ht disterber there is numbers all over.