RE: RE: Profess Well Terry did say that DM2 has stabilized at 1100 bbl/d, which is odd because they said DM2 was stable at 1200 bbl/d last month...lets hope they got it right this time. They remain confident DM2 will peak at ~2000 bbl/d under Waterflood by around EOY. I'll believe it when I see it.
They are also showing stronger results from their recent well completions using different frac fluid blends - The well type curves for the last 5 wells drilled are considerably higher than average - up to 50% greater avg prod rates if I remember right. So that's impressive. Makes me wonder what they were doing to get it so wrong (ie fracing) in the first place??
Their netbacks have also improved because of lower costs all around, I recall they showed it being now over $50 before G/A & Interest. But the interest paid on Debt is over $11/bbl! So Bringing down the debt is no doubt a priority, but we have yet to see any evidence of that, other than their committment to spending within cash flow.
I have to admit that the company is finally showing improvements in their performance metrics. The infrastructure at DM2 and Ethel are now in place to support full EOR. LOTS of light sweet crude remains to be booked as recoverable reserves as their Waterflood program progresses.
As they hopefully reign in their debt load to a manageable level, the market will respond with a higher share price IMHO.