Strategic Analysis - Yea or Nae
@EyeInvestor:
Your numbers are on the ultra-conservative side with respect to production.
You mention 700 bbl/d for 2P1 when in fact the NR states 700 to 900 based on flow tests. And another number that no one is mentioning is the SOR.
--- 2.1 --- That is among the best in the industry! And 2.1 @ 900 bbl/d??? You guys in the patch know what I am talking about and know the true value in that. [Back me up here!]
1P5
The fact of the matter is that 1P5 and all of the other well-pairs on Pad 1 will be commercial thanks to the ICDs. Yes, Pad 1 is poorly constructed and I doubt that they will ever produce a combined 6000bbl/d. However, twice the fluid production compared to pre-ICD installation at this juncture is GREAT considering all of Pad 1 is nowhere near optimal conformance. There is no reason to think that the ICDs will not work with RELATIVE efficacy on Pad 1 as they did on Pad 2. None. If you follow the rough fomula I have in place (
https://www.stockhouse.com/companies/bullboard/stpjf/southern-pacific-resource-corp/3?postid=22302304 ), about the ICDs increasing production by a factor of 50% of design shortfall, STP's cash flow will be robust enough to toss any notion of a strategic investment OUT THE WINDOW.
This is what I have been banking on since Feb 10th. This is what I will continue banking on.