RE:RE:RE:RE:I picked a lemonI think that Crew is now able to divest of the Lloyd assets due to the increasing liquids volumes at Septimus. Crew's condensate volumes were only 2000 Bbls/day in 2017 but are now over 3000 with the drilling of a couple of pads in the UCR portion of the Montney pool.
Lloyd has been an asset with very shallow declines and a lot of upside from drilling horizontals but which requires significant capital to restore it to above 2000 Bbls/day of heavy oil. It has kept Crew's liquids volumes stable with very little capital required.
With liquids production greater than 3000 bbls/day in the Montney, Crew could more than likely replace the 1100 Bbls/day from >500 wells at Lloyd with a two 5 well pads, albeit with steeper declines. However as you have pointed out, shedding the abandonment liability from more than 600 wells would be worth it.
You are correct Cheadale in thinking that it doesn't really fit with Crew's Montney portfolio, and with the liquids success in the Montney UCR, they now know that the sale of the Lloyd barrels can easily be replaced. Crew just didn't have the >3000 Bbls/day Montney condensate rates until 2019 - 2020 year with the drilling of the 5-20 and 3-32 pads with condy/gas ratios of 138 Bbls/Mmcf and 187Bbls/Mmcf. Now they do, so Lloyd can be divested.
The question is who would want Lloyd and at what price will Crew sell it? Buyers would point to the abandonment and reclamation costs to move the asking price down. Crew will be thumping their chest and pointing to the tremendous upside from low risk development drilling to raise the value. In addition the AER will be making sure that the buyer can absorb the liabilities. Welcome to the new reality of the oil and gas business, should be fun to watch.