GREY:CNKEF - Post by User
Comment by
bouquetson Dec 31, 2017 1:27pm
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Post# 27254706
RE:RE:Our bashers are simply dishonest
RE:RE:Our bashers are simply dishonest JDavis17 wrote: Miner, since you seem like a reasonable person, may I ask your opinion on one issue I have raised before?
CKE's wells have a significantly lower well head pressure than other Montney producers. I realise that is mostly due to the shallower depth, but it does have an effect on the EURs, and most likely on the depletion rate. Does that not concern you?
If you'll permit me to take the conversation in a slightly different direction. If low pressure and its effect on EUR is important, what metric would one look to?
Off the top of my head, I wonder whether it wouldn't be captured in (say) NPV10 of producing PDP. The NPV of producing wells includes the relevant petroleum geology and makes an estimate of expected declines and EUR. Then the expected strip and discount rate are applied giving a value. That value can then be compared company to company to see whether valuation is out of line.
Comments?