Crew Energy Inc T.CR

Any comments/thoughts on Crew's Heavy Oil Drilling?

[Cheadle12]

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?

[downwithdotcom1]

no surprise here go where the money is...WCS prices have ballooned in lock step with WTI-easy to drill, fast to put into production-CR has made a number of attempts to sell their heavy oil assets but they have most always done well with oil as part of their portfolio. Also, there could be lease committments to maintain. All great news -hopefully, CR is getting in large on these spot market prices.

[gonatgasgo]

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

[Cheadle12]

Could be a drill to sell.. get the production up there a bit, prove out the netbacks .. then sell off.

[gonatgasgo]

That would be the best scenario.

[gonatgasgo]

Cheadle, When oil was $35 and companies were in cash preservation mode, I could see why nobody was going to buy anything. Now, with oil at $60, but companies still not spending their cash, do you think there might be hope for someone wanting to buy some land or operations?  My only fear is that any buyer will want a steal. What do you think?

[topadvisor1]

This post has been removed in accordance with Community Policy

[Cheadle12]

If you look at Gear Energy, or Cardinal, they're generating very good FCF at these prices..so might be inclined to acquire some production/assets.   So yes, for sure, not a bad time to buy.. the lenders will be amicable around now also. Check this article from David Wilson from several years back..  we're certainly coming out of the bottom of the cycle.. so if the time isn

[gonatgasgo]

Thanks for sharing.  Interesting article.  

[BeatTheOddsSqua]

TGC there are actually 4 Lloyd wells licenced from a common surface location at 16-11-52-07W4. The wells will have approximately 1 mile long horizontal legs and should contribute a minimum of 1000 Bbls/day of heavy oil production if all 4 wells are drilled and brought on production. I agree that Crew may be 1) utilizing new completion technology that they have learned in the Montney and 2

[gonatgasgo]

Does anybody know from Crew's competitors how much it costs to drill a heavy oil well and how long it takes to cover your investment?