RE:Any comments/thoughts on Crew's Heavy Oil Drilling?I think if they can drill and get their money back in 8-10 months, this is a good tradeoff. Gas, Conde or Oil, whatever provides the best return. They should probably hedge a chunk of the production just to be safe. Everybody is bullish on nat gas and oil, but nobody knows what is ahead of us.
2021 and 2022 is the time to drill and get the money back months later. 2023 will be a year to preserve cash since they really should pay down debt, even if they reach their target of Debt/EBITDA<2.
2021 profitability should be much better than expected...but there are still more than 10 months ahead of us! Debt will go up. I am hoping the market is not going to punish Crew for increasing their debt. They also have the option on an infra sale that they can exercise as early as Q2 2021 I believe.
Cheadle12 wrote: Two new wells by Lloydminster. I didn't think they were drilling oil in Alberta in this capital program.
What are the thoughts here? Grow production, extra cash flow as the netbacks are very high on these oil wells?