RE:RE:RE:RE:RE:the NCIB conundrum and making this pig a cash cowMr Crdboard wrote: "The problem is that you assume that this has been optimized already"
Au contraire sir. The CPG wells are long overdue for a refrac program but the operations guys fail to acknowledge the economic benefits of such a strategy. I have identified more than 200 CPG wells that have a high probability of refrac success with development costs less than $10/boe for additional 1P reserves and capital effieicency averaging less than $10,000/boepd.
Its called cognitive bias or, more aptly, arrogance. Once again the new CEO was responsible for such an intervention program but was too busy drilling to slow down and pick the low hanging fruit.
And, I repeat my comment in a previous post: Why are they now shutting in marginal producers at today's hiigher oil prices.? Other companies were suspending maintenance expenditures and shutting in stripper wells when oil dropped below $40/bbl. This is another example of a fat organization that has lost its direction.
An optimized asset base - hahaha - far from it!