RE:RE:RE:EORDesperate for cash on the brink of collapse. 98% of the second to fourth worlds have lost of assets to develop and no cash LOL this is the furthest you can get from enviable position even when propped up on truck loads of welfare dollars. A material shift from midstream to producer is a massive red flag because that never happens and makes no sense when midstream is the investmend grade play when the "investment grate contracts" are backed with SBLC at least.
fauxtomato wrote: From the AER application it appears TWM is proposing to repressurize a depleted oil field, around the Valhalla assets acquired from Husky by injecting trucked in produced water from other producers. Just a strange wrinkle for a company that claims to be focused on contracted infrastructure.
Maybe it's a service provided to producers in the Montney to dispose of produced water, maybe it's a way to defer reclamation expense by continuing to use the old Husky wells. Who knows? They own a few producing assets...EOR operations in the right formations are capital intensive up front but provide long lived predictably declining production as they're located in well explored and understood formations.
TWM is in a weird position right now. Very little available capital, high cost of capital, but a large portfolio of assets to invest in. There must be some reason this project makes sense to them but it's now obvious to me. But look at the Highwood oil debacle and explain how any of that makes sense? Weird company, this. It pays to creep their AER filings as you literally have no clue what to expect, and its rarely anything they'll publicly discuss as it's all non material.