RE:RE:RE:Drilling rigs? Peyto can keep 5 rigs for long term as you said. I am more after "nimble" Peyto for short term opportunities. All other discussions are valid for long term perspective and I agree.
Peyto should be able to increase / decrease rigs quick enough, quicker than others. I did not know we are at the limits of egress.
Riggertalk site shows 5 rigs. Are you sure they have the 6th in place??
It may not be good news for some but may turn out to be definitely good news for me, that shows a possible sign for in-year roi wells from cash flow. It will be an immediate catalist for sp I believe, if planned for short term hedged feasible wells.
TerribleEng wrote:
Yeah and well 5 drilling rigs is a lot for a producer that only had 100kbpd. ARC is only running 8 and has 3x the production.
Peyto's model is keep 5 rigs on long term contracts through the good times and the bad times. This gives you an experienced crew and you can modulate the amount of activity. Through the bad times, they had five rigs but were running them at low utilization to keep the experience. It's more expensive but Peyto gets more control and inflation is less of an issue.
They did add a 6th rig last week...not sure how nice feel about that.