RE:RE:RE:the NCIB conundrum and making this pig a cash cow
Mr Cardboard wrote: "However, I disagree with Oilyexec thesis of sweet spots having all been tapped. For example, you could deploy more capex towards waterflood and really maintain production for a low cost/new barrel."
I agree, waterflood expansion is a great idea. There is one small problem, though. Generally, w/f in light, tight oil reservoirs works reasonably well when the relative permeability > 0.5 mDarcy. In other words, it works in the sweet spots but is marginal regarding sweep effieincey and the resulting increased recovery necessary to achieve $10/boe development costs in the lower grade portions of the reservoir.
W/f reduces the deline rate of the fiels but requires 1 year construction lead time and another year (or two) for reservoir response and the resulting production increases. Also, if the reservoir has been depleted from primary recovery, the reduced reservoir pressure is not conducive to economically waterflooding a field.
Can we wait 2+ years for a w/f strategy to impact the CPG SP?