RE:RE:AECO, Climate and Electricity production.Miner1967 wrote: You provided the facts, but the bashers don't rely on them, they just try to convince that "NG is worthless, oil is good", because they hold indebted stocks with 10-30% oil.
They also refer to costs, when all the data are known and we are already aware of the low cost production of CKE.
I want to point something else out. If you read between the lines on DEE: they found a high condensate region. And now DEE is exploiting that region.
After my 5 minute academic research on condensates, I've come to learn the distribution is "fractal" (no pun intended.)
You can find a region where condensates are locally high. However, in the larger adjacent surroundings the yield regresses to the mean. This has something to do with stratum sheering stresses that I can't understand, but the point is that since this geological affect is known to be mean reverting as scale increases, so will be CGR.
TL;DR: DEE is exploiting high value assets now, knowing the remaining assets risk being underperformers. Burn bright, die quickly?
In contrast, CKE stock is relatively cheap, they are only drilling a small number of wells and despite the wells being dry, the company is forecasting being profitable using what is turning out to be conservative numbers.