GREY:CUDBF - Post by User
Post by
speculatoron Dec 29, 2014 3:11pm
159 Views
Post# 23269924
Opinion, GS
Opinion, GSSome of the old timers will remember G.S. He was taken off the board because of his opinion, to refresh your memory. He also was vindicated, VRY. (See post)
For those who are still holding or planning to buy, please take note.
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POP looks like its "Goose" is pretty well cooked! They really will have very little money left in Q1 2015 for drilling their Viking hz well - needing pretty well all their ill gotten cash just to pay the corporate quarterly G & A? While those Viking horizontal wells can be profitable at $100+ per bbl if the drilling and completion costs are minimised through the drilling of a program of bulk wells - at $60 per bbl and as a one-off drill - especially in their proven higher water cut setting at Milton - it would be almost suicidal to drill such a well? While the proposed drilling may generate some small measure of very short lived excitement - the reality of a 50-60 bopd IP and moderately water cut high initial decline oil well is such that they are very unlikely to even begin to cover their drilling and completion costs over the life cycle of such a well - and they would be better off hunkering down, slashing G & A and hoping for a return of much higher oil prices... Their best hope is to perhaps try a production test of their South Reston well - but I believe they already had come to the conclusion that such a completion is hopelessly uneconomic - even at $100 oil...