Second Wave Petroleum Inc SCSZF

RE: Economics??

[nlr2]

I looked at their presentation and they said after 30 days each well on average should produce 1.6 million. As far as years though I have no clue. I would have to think its better then that. This has been a total trainwreck. One has to think that if they had any offers during strategic alternatives they should have taken them. Going forwards the two positive things are that Brookfield controls this and I highly doubt they want their investment to evaporate so we have a backstop. The second being that after 2012 from cashflow we should be able to add a second rig and quicken the pace of expansion. This coupled with electrification and pipelines will drop op costs and increase netbacks. Hypthetically anyways. With Crescent Point as operators their success is our success which is a good thing. As the cashflow grows we can either pay down debt or explore the Pekisko or drill quicker in the BHL. This will have to be a long hold now though. The most worrisome thing is that the BHL appears to be a curse for juniors. Its always to wet or to busy or someother excuse to hit targets. We will see if this changes going forwards.