Obsidian Energy Ltd T.OBE

Permian

[Franman184]

Production can grow in the short term yes. But the decline rate is excelerating even more on the new wells and therefore more wells are required to be drilled and at a much higher break even. Unless they can come up with a newer technolgy to get even more out of the wells. The wells are becoming more and more less economical with out oil going well above $130.

[kavern23]

Franman, the problem is the financial side that eventually causes lots of production growth in the Permain. The well paybacks are so good in the Permain at these prices that after 3-4 months companies have a paid off well that can spin off FCF to drill the next.set of wells.  Prices are so good companies dont need to take on more debt to expand rigs after the next batch of paid off wells