RE: Nexen sees tenfold jump in Horn River gas outp
More drilling and new wells would certainly help CCZ however welloperators typically do not change monitoring tools - CCZ's or others -once they are in place.
Question is can CCZ convince the big players that their system is thebest... so (a lot of) new wells do get CCZ's monitoring technology...
The good side of the story is that the recurring revenue for CCZ ispretty much guaranteed but growth by 'replacing' monitoring systems onexisting wells is pretty much zero.
A lot depends on the NG price too... some think it will stay low for quite a while = NO drilling
and with production costs in AB & BC being fairly high... things might not play out as planned.
https://watch.bnn.ca/commodities/november-2009/commodities-november-18-2009/#clip236643
The new acquisition in the US might help spur the growth... time will tell.
At 70c CCZ is still cheap, question is how are they going to increasetheir recurring revenue on the NG side so that it becomes a reallyinteresting story in 3-5 years...
The document imaging leg of CCZ also has guaranteed recurring revenue, as long as there are government contracts. I dont' see them go away anytime soon - but the (renewal) sale still needs to be made ...
I am in this since 2007, and plan to stay for at least another yr, but beyond that ... they might need some innovation to keep me interested.
Some claim it goes to $5, people on this board dream of $10... I doubt it, unless they can come up with something else than buying yet another company.
Just my thoughts
PS