GREY:CAZFF - Post by User
Comment by
sailpgdon Aug 21, 2014 9:40am
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Post# 22864124
RE:Do the math
RE:Do the math2,000 boepd is a reasonable year end goal and with that sort of production number and with the efficiency and effectiveness that management was able to reach that number, they should be able to secure a much more favorable credit faciility.
In terms of decline rates, yes they are high but they are very few if any wells in the entire sector that have as high IP-30 rates as Caza. They get the benefit of the revenue of 100s of extra boepd of oil in the first 45 days that other operaters do not. The wells then stabilize at a similiar boped to other regions. Look at the field netback per boe. It is extremely impressive for a company so small. Even if the price of oil declines, I think Caza is going to be able to keep their netbacks per boe in the high $50s with increased production and economises of scale.