GREY:TRIAF - Post by User
Post by
AIGswapon Nov 09, 2011 11:03am
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Post# 19222227
NAE Lochend comments
NAE Lochend commentsFrom Q3 report:
"NAL’s Cardium performance at Lochend is exceeding expectations with 30-day initial production rates in the 200 – 400 boe per day range "
"Liquids volumes have returned to first quarter levels primarily as a result of higher oil volumes in Saskatchewan and better than anticipated results in the Corporation’s Cardium oil program at Lochend "
TOL is really gaining some good momentum in the past month and NAL's comments are showing that they seemed to finally have figured out what works in the play (thank goodness because the earlier results from the gel-fracked wells were terribly uneconomic). Recent land sales also confirm interest and value.
It seems the bankers have realized these positive developments and have awarded a credit bump. I assume this is based on an expected material increase in reserves at year end. Note that most of TOL's sections don't have reserves assigned and the ones that do are matrially underbooked due to initial poor results from their gel-fracked completions, which of course have been remedied with the slick water completions.
Cheers