RE: RE: Happy thoughts or pipe dreams? IS PMT currently drilling 50-100 heavy oil wells/year? I recently read that the "average" WCSB well was nearing $3.6MM up from an average of $1.3MM from between 2004 and 2010 (G&M P. Tertzakian 21-Aug-2012)... of course that is average... 1/2 the wells cost more and 1/2 cost less... nevertheless.. the optic suggests that "average" well costs have risen by near 3X over the course of 2 years... it is absolutely a sign of the low hangin fruit being all but gone... AND an inidication of the cost pressures facing companies looking to increase drilling inventory...
My point... Shammy is talking about selling land... when They aren't making anymore of it... the current economics suggest that buying production is far more fiscally responsible than drilling for it... and yet there are asset packages lingering in the market...
do as you choose... andyour own DD...