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Gear Energy Ltd T.GXE

Alternate Symbol(s):  GENGF

Gear Energy Ltd. is an oil-focused exploration and production company. The Company carries on the business of acquiring, developing and holding interests in petroleum and natural gas properties and assets. Its operations are located in three core areas: Lloydminster Heavy Oil, Central Alberta Light/Medium Oil and Southeast Saskatchewan. The Company is also engaged in focused on improving oil recoveries through the application of water flood technology. The key properties in the Central Alberta Light asset include Wilson Creek, Ferrier, Killam, Drayton Valley, and Chigwell.


TSX:GXE - Post by User

Bullboard Posts
Comment by RollinInDoughon Dec 11, 2018 2:02pm
115 Views
Post# 29098473

RE:GXE: 27% Decline rate, Poor results in 2018 (87 boepd/well)

RE:GXE: 27% Decline rate, Poor results in 2018 (87 boepd/well)so wrong.... most oil producers do not have a decline rate less than GXE has... and to compare with cequence wells is so comparing apples to oranges it is funny,

all pools have different metrics and different decline rates... hell cequence wells can come on at 1000 but within a year they have declined to about 150  and worse!  that friends means a decline rate of well over 75%.  a tad worse than what gear has, no?  Besides the wells cost 5 times as much  and the area of Karr- Simonette has little running room as the lands cequence owns, and their interest is 50%, are nearing the end of new drills there... they have been drilled an awful lot you know?

anyway, cardinal has most of its oil under pressure support from secondary recovery and they produce light and medium oil, not heavy like GXE does... so of course that lowers decline rates but also means those fields are nearing the end of development.

I would not own GXE now.... nor cequence, that went thru a brush with death.   But in fact, GXE has a very resonable decline rate, and for the cost, their wells are decent... not great, but OK compared with other like producers.  I would think gear is top decile among junior heavy oil producers in terms of all the metrics one would like, as in RR ratio, payout, decline rate... etc... all pretty good.... not swamp... and comparing a heavy oil producer with mostly cold flow, unfraced wells with cequence, a gas producer with condy and a bit of oil... with pressure from deep well;s and from gas in the mix... and frac'd   and deep.... I mean you simply cannot compare those... rediculous... cequence... compare their wells to maybe kELT... and Delphi... those in the same area, the same play type... not comparing a deep gas player with a heavy oil player for gawds sake
Bullboard Posts