GREY:STPJF - Post by User
Comment by
ShatnersRugon Jun 10, 2014 11:53am
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Post# 22645744
RE:RE:2p5 should be the first well pairs for ICD installation
RE:RE:2p5 should be the first well pairs for ICD installation
April production is already available if you have the appropriate subscriptions.
A poster, some days ago, had mentioned that April production at McKay averaged 1950 bbl/d. This is inline with March's numbers and 2P1 producing as ~600-650 bbl/d.
The way I see it, 2P5 installation is being fronted by the interested buyer. It's the ONLY way to explain the bypassing of capex freeze. If anyone else has another theory, please do chime in.
2P5 is being fitted for one of two reasons:
1) Management and the buyer are at odds with respect to the final sale price. Should 2P5 result in a marked performance increase relative to 2P1, then the final sale price will be adjusted upwards.
2) 2P1 is not performing anywhere close to nameplate(1,000 bbl/d) nor is it expected to. Increased production, yes, but unlocking the true value of STP-McKay, no. If 2P5's ICDs prove to be studs, then a sale can occur and we can all buy boats.
Either way, my feeling is that everything now hinges on 2P5's post-ICD performance. For that, we may have to wait a while.
If STP brass for unbeknownst reasons decides to make public WITH SPECIFIC NUMBERS 2P1's and 1P5's progress, and if these wells are continuing to show increased production month over month, then it might be an idea to scoop up a few more shares at this depressed price level.