RE:What Did They Say?You have that wrong. 12.3 million + 4.7 million + 1.9 million = the 18.9 capex.
"Provident Resources also plans to invest $4.7-million into the clean-up and reclamation of inactive wells as part of the company's ongoing abandonment and reclamation obligations ("ARO"), with $1.9-million for capitalized G&A."
1.9 for G&A is reasonable. 4.7 for ARO is high but that's one of the negatives of having high decomissioning liabilities. At least 4.7 million spent there means 4.7 million deducted from total liabilities. Also these liabilities are included in the reserves NPV figures.
They seem to be focusing on the Princess wells because in this environment with respectable WCS pricing the paybacks should be very quick. Those horizontals probably are even more productive than past wells.