Thank Goodness Mr. Bean Counter does not run an oil company.Bean , has lost a few of his marbles if he this POU is only worth 80 cents, he is demonstrating he is not a creditable analyst and has no clue what is taking place a paramount.
I wonder if he thinks Keyera should be 20 cents, because of their poor performance in the startup at the Wapiti plant.
2018/2019 well DCET cost are roughly 11.9 million, for an average return of capital of 3.35. The is in the content of the report of the 3rd party auditors McDaniels.
So now with wells are coming in at DCET 8.7 million you can expect a return on capital of 4.5 if all other well metrics remains the same. Based on the assumptions used by McDaniels to forcast the well that cost 11.9 million dollars.
So Karr continue to get better, and the economic's have improved almost 33 percent, or another way to look at it is close to 3 - 8.7 million dollar wells for the price of 2 - 11.9 .
Mr Bean Counter, isn't this a big enough and significant enough improvement for you? Well are now 3.2 million cheaper than 20018/2019 wells and they are likely better drilled and contain more reserves.
How about this for sustainable savings 2.75 cents a boe in water handling, or 4 million dollars in Q2. A low production quater for Karr of only 16,000 boe a day, Mr Bean thinks they will save less in the future when the production ramps up, he should be jailed for stupidity giving the advice he has.
Bean heads have no place in investment....
IMHO