RE:RE:RE:RE:RE:RE:Well ResultsYGR had some good wells in Ferrier in 2022. Didnt really drill too much in Willy in 2022.
But commodity prices were also really high in 2022 and capex per well didnt mean as much as if lower.
But by mid 2023...june-ish I think it was apparent to most...after a warm winter...at least ng was going to be in a tough position.
I don't think the cardium undrilled locations are good enough for any company to drill 15 plus 1 year or less payback with 72 oil and 2 dollar NG....at 4-4.5m per 2 mile well. Even OBE and even if they high graded they would be hard pressed to do more than 5-7 wells a year in this enviro.
But at 3-3.5m per well...and so many more locations are opened up.
Look at Inplay oils guidance today...doing 12 cardium and 3 belly river for 67 m capex.
Thats alot of capital per well. UNless NG picks up, IPO is going to have to hit quite well on those 12 wells at that type of capital cost.
IPO must frac pretty hard.
YGR just needs to even get 2022 type ferrier results in 2024 with a 3.5 mile capital cost per 2 mile well and that would good.
That's one big advanatge OBE has over IPO, BNE and YGR...they can scale back in cardium during these prices and just high grade a few locations with high well cost cause they can drill in another area Peace River.
But if IPO dropped 17-20 m in capex year over year...one would expect same frim YGR.