RE: RE: BNN : rumor is water is leaking into the w Water intrusion is common in all tired heavy oil fields. It's common in new heavy oil fields. It's common in light oil fields. But in BNK's case, it somehow caught them off guard? That their claims they had more than ample water disposal capacity turned out to be at best a half truth, coupled with ongoing sand issues and premature pump failures, is what has the market spooked. Add in falling oil prices (which affect heavy oil/low netback producers the most) and it's not pretty sight.
But none of the issues are new or unique to Patos-Marinza. If anyone ever talked to previous management (apparently none of the so-called "smart money" bothered), they'd have known about these issues long ago. But Badwi was able to apply so much capex and drill so many wells that the ongoing water and sand issues were able to be hidden from the market - until they couldn't any longer. Now the market sees Badwi for the blowhard he truly is - and P-M for the tired old field that it is.
That said, BNK now looks attractively valued on the metrics that matter. The only concern is if oil prices continue to sink - that hurts a high cost producer like BNK the most.