Crew Energy Inc T.CR

Congrats Crew on the New Record Production Rate!

[BeatTheOddsSqua]

Nice update from Crew today as they continue to execute their 2 year plan.

 

Q1 2022 showed a 27% increase over Q1 2021 which is outstanding given the initial high production decline on the Montney gas wells.

 

From their update it appears that Crew has brought 8 extended reach horizontal ultra-condensate rich wells on stream in late Q4/21 and Q1/22 from the 4-14 pad which have been flowing for periods of between 11 to 66 days before being shut-in for tie-in to permanent facilities.  Crew drilled 10 wells at the 4-14 pad so that leaves 2 wells that Crew has available to maintain annual production levels as needed.

 

At the 4-21 pad, Crew states that there are 2 Upper Montney "B" zone wells that have been producing for 90 days ("IP90") with average per well sales rates of 1,486 Boe/day. Crew drilled 5 wells at the 4-21 pad so that leaves another 3 wells that Crew has available to maintain annual production levels as needed.

 

At the 4-17 pad in Groundbirch,  Crew drilled 5 additional wells that will evaluate two additional Montney zones.  Crew states that the first 3 Groundbirch wells are still exceeding their 2P type curve forecasts, with an average per well raw gas production rate after 150 days ("IP150") of 8,976 mcf per day. Simply amazing!  I can’t wait to see how the other 5 wells perform when they are brought on stream during the second half of 2022.

 

As I suggested in a prior post, Crew now has the luxury of being able to set their production at a rate that they deem sustainable without incurring additional capital costs above their $80 -$95 million budget.  For Q1 2022 the appropriate production rate was 33,300 Boe/day or 300 Boe/day above the upper end of their 2022 guidance. 

 

Crew now has 5 DUC wells at Groundbirch and 5 drilled and completed wells at Greater Septimus available to bring onstream as needed in order to maintain or exceed their 2022 production guidance or to carry forward to 2023.  This is a very enviable position to be in as a producer, instead of constantly trying to find every molecule of gas available in order to meet production targets.

 

With no increase to their capital program announced yet, it appears that Crew will be using AFF to reduce debt and strengthen their balance sheet. Awesome!

 

For 2023 it appears Crew has identified 2 pad locations at 11-27 (7 wells) and 2-24 (10 wells) in Greater Septimus (Presentation slide 17) to grow and maintain production. There are no new pad locations indicated at Groundbirch as of yet, but since they have 1,919 locations identified, I’m sure they will add a few.

Finally, I had a chuckle at the last line in the press release today: "We look forward to reporting our Q1/22 financial results on May 5th, 2022."  Although I don't salivate over the financial reports as much as GONATGASGO possibly does, I am looking very forward to seeing them!

 

Nice work Crew, I appreciate all of the hard work!

 

GLTA

 

BTOS

 

[Oldnagger]

Many thx BTOS, I was wondering where all the wells disappeared to. It seems to me that Crew could easily ramp up production to 40 kbpd if they wanted to (barring debt paydown ). Perhaps we will be there very early in 2023 at which time, debt will be much lower !! That is when things will really get interesting !! Do you have a ballpark estimate of what production maintenance will cost annually

[BeatTheOddsSqua]

Oldnagger, Crew appears to be extremely focused on getting it's financial house in order. We must remember that only 2 years ago they were on the brink of bankruptcy with a $0.16 share price, terrible commodity prices, declining production, runaway op costs and a mountain of debt. Crew escaped from their dire situation (they were almost up against their bank lines) and survived by doing that

[Oldnagger]

Thanks once again , a very comprehensive and informative answer , that confirms my own suppositions. Unfortunately, I have a rather nasty habit of always being overly optimistic in my own projections. I agree however, after long consideration, that the first priority must be to secure the future, but not to obsession as some would have it. Hopefully Crew can pare its debt level to a point where it

[Oldnagger]

In the interest of providing other view points How To Get Your Home Off Natural Gas (msn.com)

[sportstermathew]

That link was load of hoooey. Where do they think they can get the electricity from? In Alberta it is from the new Cascades power plant next year, run by natural gas by Peyto. People don't want tons of panels in their backyard, they don't want windmills close by, no refineries, no pipelines, no dams, no mining, no nothing. So where do they think all the resources will come from to make

[PonyBoyOutsider]

I can weigh in on something finally (regarding the article OldNagger found). I've been operating a Geothermal Heating and Cooling business in NE BC since 2005. I amazed at the lack of knowledge the average consumer has on the option to use a Geothermal heating/cooling system. I believe this has an awful lot to do with policy programs. It's actually too good a thing, so keeps getting the

[Oldnagger]

That is the thing about NG , it competes with everything. So very central to our economies and livelihoods. Let free markets rule. If Geo or anything else for that matter is favoured by the local market , then by all means let it be. NG can go to other places not as fortunate as us !!

[gonatgasgo]

Finally, I had a chuckle at the last line in the press release today: "We look forward to reporting our Q1/22 financial results on May 5th, 2022."  Although I don't salivate over the financial reports as much as GONATGASGO possibly does, I am looking very forward to seeing them!   BTOS, you are funny!  I wish I could understand all these production numbers the