How low can it go?That is the question at hand, wells now are 7.5 DCET compared with 13.3 million dollars originally. The operation cost are declining with more declines to come in 2021 when they ramp up the volumes.
Some wells that previously cost 13.3 million dollars to drill have projected netbacks of 70 million dollars, so if they could of drilled those same well for 7.5 million which they can now.
Spend 7.5 million get 70 million back is that resonable enough economics.
This does not take into account any and of the improvements in operating those wells, which could add millions more to the netbacks.
I am not sure, How much lower the well costs can go, all i can say the best play and best economics in the entire Montney.
POU is a 25 dollar stock.
IMHO