What may Crew get from their 7 wells at West Septimus?Some quick math using info from Crew's July Presentation (3-32 pad production) indicates that the West Septimus 7 well pad that Crew has begun drilling could produce 18.9 Mmcf/d gas, 3577 Bbls/d condy and 1078 Bbls/d NGL's for a total of 7805 BOE/d.
These wells would double the Septimus conde production to more than 6900 Bbls/day and increase gas production from 32 Mmcf/d to more than 50 Mmcf/d.
The sales revenue before royalties, processing and transportation using $3 cdn gas, $50 cdn condy and $20 cdn NGL's could be in excess of $90 million in the first year of production. This would cover the entire 2020 Exploration and Development budget of $75-85 million.
It is interesting to note that Crew is essentially taking the $70 million in proceeds from their infrastructure deal and re-investing it in a project that will return all that capital back to them in 12 months and then continue to generate cash flow for at least 4 years more. If they are successful that is a nice piece of business.
I noticed during my review that Crew had only completed 4 of the 5 wells drilled from the 3-32 pad, so there is possibly of another wellbore being completed before years end.
Please check my math as I have been watching the Leafs game while writing this. Darn they lost...hoping for as many Canadian teams as possible in the playoffs.