RE:RE:RE:New Acquisition - (quick napkin numbers)I wouldnt use this purchase price as much of a guildline on valuations as Cardinal could easily have paid some decent value for the drilling location prospects...assuming they are in clearwater at figurelake.
What CJ got is also more valuable is 500 out of 900 boe they got is clear water so that means it has to have been drilled in like last 3 years....not an old 1980;s well that is "huffing" and puffing to produce the last drop of oil. That is worth more per flowing barrel when wells are newer. The production on Mitsue stuff they likely didnt have to pay much.
Good Idea as CJ has a really good drilling team. Had great sucess in south and CJ's martin hills CLearwater wells all have been fantasticly profitable just only one more section to drill here. Which they will in 2024.
CJ will probably want to test this land for clearwater fairly fast.
The clearwater is shallow and doesnt need frac in so wells dont have to produce stellar to be economic.
Rubelite and Spur are drilling in figure lake are for clearwater wells.
Gear land doesnt have this type of exploration potential.
And with drilling rig technology getting so good, lots of companies would rather drill more new wells with excess capital versus buying older mature property stuff like Gear that doesnt have the hottest drilling prospects.