Iron Brdg Res Inc. OEXFF

RE:RE:Cash Payout

[ditchdigger251]

It all came down to debt vs. cashflow as far as I can tell from those I've talked to.  If cdn nat gas prices were higher and not in the toilet as it's been since late last year I think the risks would have been more acceptable to continue.  I do think technically there were some things that could have been done a bit differently to have helped risk reduction too.  It's not stated for obvious reasons but I believe IBR's water production was a big cause for concern too.  The offsets on either side - Hammerhead & Velvet both make some water but nothing like IBR's wells.  This, btw, is something I have seen before (a wet upper Montney trend between two much less water wet liquids rich areas) and believe could have been mitigated by cutting frac sizes by 40% and adding more stages.  This would have limited propped height growth into that much more wetter more permeable Upper Montney section and stimulated more rock in the tighter more oily good stuff.  I think easily hitting the type curve while showing reduced water would have been the confidence builder they needed.  And if the smaller stages were tailed in with, say 5 tonnes, of resin coated sand they might have been able to avoid the expensive time consuming cleanouts too and kept their two new Hz's flowing throughout the entire summer further boosting confidence that they have an economic asset.  I know it's all hindsight b-s but these are not cheap wells and management needs to know that the investment is safe.  Given the low ball sale to Velvet they were no longer confident of success and IBR debt had creeped up to where they couldn't ignore it.  Not even bitcoin mining (arguably a desperate move) could save her.