Post by
drunk@noon on Dec 18, 2020 9:49am
Needless to say, I was right about a reason for selling.
Basically certain misquided individuals thought the NGC would be a big positive. At the best it was always going to be a non-event. The price they got was never going to be very high. The value of their gas is the fact it will be so cheap on a cap ex and op ex per mcf. i.e A relitively few wells neede to service such a large resource. Economies of scale so to speak. I am thinking somethning like 25 cents mcf to produce--not sure what transport will be but given short distance and high flowrate, you are talking all in prod and trans costs in the 50 cent range. Therefore if they are able to clear 2 ollar us netback or 2.50 plus mcf canadian, that is fine with me---given the cap ex per mcf is so low.
Theefore the netback per mcf was neve going to be high. And iditos out there convert gas to BOE for some reason and needless to say netback on oio are always alot higher than gas, in a more normalize 50 dollar brent price.
I always though the price would come in at 2.50-2.80 mcf range, and given that the company isn't disclosing what it is, and empasizes the utility of the contract, clearly the price they will recieve doesnt sound too impressive.
Comment by
smxmcx2 on Dec 18, 2020 9:54am
It should be a big positive. However, the most important aspect of the deal is the pricing. This is basically the same as not announcing the deal at all.
Comment by
smxmcx2 on Dec 18, 2020 10:14am
One more thought after rereading the press release. Why is the statement "initially from the Coho field" included. Does this contract only cover the Coho field at this point. Extremely vague, press release.
Comment by
Goaweigh on Dec 18, 2020 10:19am
It means the deal covers COHO, the initial or first production will come from there. Do you think it means first production will come from Royston ? Are you trying to find a problem where one doesn't exist ?
Comment by
Chreca1 on Dec 18, 2020 10:30am
If not refering to Coho we wouldn't have known it was included in the deal as that was not in the original plan simple as that
Comment by
Chreca1 on Dec 18, 2020 10:31am
I'm not here to pick a fight, but I don't like the false claims and BS seen her today not going to just sit and watch it in silence that's for sure