Peyto's President's Monthly Reportis great for us shareholders to keep in touch with the operation and its people.
I thank Mr. Gee for taking the time to write it.
The description of the treadmill effect is very well done by Darren.
The conclusion is very meaningful for the value of the enterprise. I have learnt
something this month: "...the decline profile of a older horizontal well converge and
behave the same as a typical vertical Cardium well."
I thought horizontal wells had no economic value after 6-7 years whereas vertical
wells have life expectancy of 20-25 years. It will be interesting to see the absolute
value of 2010 production wedge (Peyto's first year of mostly horizontal wells
production) in 5 or 6 years. We will know by then if that wedge of production is
meaningful and what kind of impact it will have on Peyto's corporate decline rate.