Frontera Energy Corp T.FEC

Anyone know what happened with the Shell Well?

[kcac1]

Didn't this rig go from drilling Kawa-1 where it had serious issues with high pressures, heat and kickback where it was not safe to do the normal complete testing and the rig went directly to T and T to drill one well for Shell with a brief layover?  So, Shell had this rig for almost a year and was this rig just used for just that one well for Shell? I know they had some severe mechanical issues but was the well finally completed and has Shell announced if it was a success?

Just wondering as this article leaves the Shell story out completely and reads like that CGX is at fault for the many delays in drilling the Wei-one. In hindsight, couldn't they have picked a better name than the Wee One Well?  Hopefully, it will turn out where the Godzilla one well would have been more appropriate.

Sure not much interest in either stock but I did not expect CGX to drop 12% on what seems to be good news. Articles with some misinformation like this do not help.

CGX Energy Finally Spuds Wei-1 Well After Months Of Delays | the deep dive

Also, I am in the US and trade through Schwab and found the FEC TSX options but they are so thinly traded, I don't see where they are of much use. If some puts are reasonably available out of the money around June, it might make $ense to hedge your bet if you are holding a large position in FEC but I doubt there will be any.  I was suprised at the light trading on both companies on the TSX. No real buyer or seller stood out, maybe TD with a little retail selling of OYL but the news  of finally spudding a potentialy high impact well seems to be of little interest to the markets at least today.

[SportyJ]

The rig is fully capable to do what is directed by the Wei operator. Could it have problems, sure. The article made me laugh and sounds as though it was either written by a SH/ST poster or sourced therefrom.  Kcac, how did you find that article?  

[kcac1]

Sporty, I am not fond of CGX Mgt but hard to blame them for the delay when Shell did not release the rig. I assume we will not hear much about the Shell well that tied up the rig for a year. That article was worthless Based on price action, with CGX down about 17% in 2 days when I was worried that Shell would not release the rig by 1/31 and what would happen then? The fact the well has been

[SportyJ]

Kcac, I've been fortunate in my life to actually stand on a few rig floors (onshore) and it's hard to properly describe how a hole gets drilled. Its anything but glamorous. The iron, bha, steel, chains, rotary table, drill pipe, bits, weight, brakes, bop, elevator, blocks, mud etc and then you throw in people; it's really incredible. No one that knows anything about o&g drilling is

[Kelvin]

Good observations Sporty. Especially relevant on HTHP wildcats where the hole throws surprises at you all of the time. Regarding forward plans: If it's true that inflstion will be with us for years as many economists project, then everybody is now scrambling to find some sort of investment that'll return higher than the inflation rate. What percentsge return would investors be looking for

[Kelvin]

kcac1, I found the below link. Interesting that it says that private equity owns 36% of fec which suggests that they'd influence the board to grow value. That suggests to me that private equity aren't in it to make quick money chopping up assets and selling them. What's your take? https://finance.yahoo.com/news/kind-shareholders-hold-majority-frontera-080755514.html?guce_referrer

[SportyJ]

Dirk, certainly private equity, hedge funds, institutional $, money managers, mutual funds etc let's call em "smart money" have an investing advantage over retail via the shear size of the $ they control and have first access to unicorns, startups, spacs etc. Let's throw catalyst capital (CC) in there. However, the smart money put their investment pants on just like we retail do;