GREY:STPJF - Post by User
Post by
nikeherculeson Jun 19, 2014 1:22pm
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Post# 22676050
Conversation with the CFO
Conversation with the CFOGents:
I called up Howard and he was good enough to answer a few questions regarding the ICD's. Here are the key points:
1) STP is using the same ICD vendor on 2P5 as they did on 2P1 & 1P5. Vendor is Baker Hughes. They also are using the same installation crew. They are happy with the current ICD configuration - "proof is in the pudding"
https://public.bakerhughes.com/otc-asia-2014/presskit/Overviews/38756_EQUALIZER_SELECT_AICD_OV_Final.pdf
2) From the 2P5 application (Application# 1796674) it looked like they were experimenting with different ICD's. They did take a look at other ICD vendors but decided to stick with Baker Hughes.
3) Reading in between the lines, it looks like the capex freeze is off. STP is paying for the installation on 2P5. Plan to do more over the summer.
4) Regardless of what happens with the review, STP should be able to reach corporate breakeven and beyond. Current ICD wells are continuing to be ramped up.
5) SAGD is a slow process. It's not like conventional where you drill a well an oil flows. Not good for the impatient types.
6) Acknowledged that current SP is nothing to be proud about. Debt is big compared to current production.
I'm thinking Deduction's scenario of "no deal" is the most likely.
NH