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Birchcliff Energy Ltd T.BIR

Alternate Symbol(s):  BIREF

Birchcliff Energy Ltd. is a Canada-based intermediate oil and natural gas company. The Company is engaged in the exploration for and the development, production and acquisition of oil and gas reserves in Western Canada. The Company’s operations are focused on the Montney/Doig Resource Play in Alberta. Its operations are concentrated in the Peace River Arch area of Alberta. The Company has a 100% working interest in its Pouce Coupe Gas Plant and two oil batteries, as well as various working interests in numerous other gas plants, oil batteries, compressors, facilities and infrastructure. Its Pouce Coupe Gas Plant, which is licensed to process up to 340 million cubic feet per day (MMcf/d) of natural gas, is located in the heart of the Corporation's Montney/Doig Resource Play.


TSX:BIR - Post by User

Bullboard Posts
Comment by Riggedmktson Aug 15, 2019 6:25pm
146 Views
Post# 30034198

RE:RE RE RE RE;Tonken' s additional capex spending

RE:RE RE RE RE;Tonken' s additional capex spending Exactly. Tonken's decision makes perfect sense to me. They front-loaded the 2019 capex ($200mm in the first half) and didn't have to drill anymore. The second half was just the $130mm+ cash flow to the bottom line, no risk to allocating some of it to forward capex. He saves over $3mm on drilling plus makes a bit on the better winter pricing for natgas. And the sustaining capex for 2020 is now only about $150-170mm, translating into $140-150mm ($0.55/share) in the FCF. And that's with the current natgas pricing - I think the shale is leveling off and we'll see US$3 gas in 2020.
I think BIR is a very well run company and I've been looking for an entry point for some time. I know it's painful for long-term holders but I believe you'll see much higher share prices in 2020. JMHO and GLTA.
Bullboard Posts