RE:RE:1 Billion Dollar Production HubGolongGekko wrote: Also found it interesting that Les said that the 30K production when STELLA is pumping is forecast for the first 12 months. Does that mean HIGHER or LOWER in the next 12, 24, 36+ months.
The BEAST must have a MAX capacity per day. Don't recall if we ever heard anyone say what that TOP LIMIT can be. I'd think with the new PIPELINE in place, they could GUSH much more.
Need clarification from IAE Nerds or Oil Toadies...
Best GG . . Almost at STELLA!!!!!!!!!!!!!! Shark Alert!!!!!
Gek, my thinking is that at the first year on Stella will see peak or optimal production for a year and then the Stella field will start to come off. Les's estimate is just that, an estimate based on all the in-house as as well as independent (Sproule) metrics that they have on the field, which means ultimatley the payout could be somewhat lower or somewhat higher - basically a 50-50 channce either way.
But I found the more interesting point that Les made is that they have a production que waiting in the weeds to bring on every two years. There are four fields in the list right now: Hurricane, Harrier, Volrich and Austen. But don't forget about Isabella just south of Stella (I think that is the name - handler is Total I believe and I believe IAE still has a small piece of as of right now) as well as Helios which they let go but under the right PoO conditions could bring back. As well there are a slew of other prospects in the GSA that they could tap into. Point is, they have probably ten years of fields currently in their stable and when you extrapolate the average cost of oil over that 10 year period and then factor in the less than $20 OPEX from this area, you can quickly see why they created a production hub. And that is just looking at their current stable of prospects. This is just the start. Once they get the PIG-1 rocking and rolling they will start purchasing other prospects thus extending the life of the production hub. This could easily be a 20 year project which is a nice foundation for other E&P by IAE.