Presentation by PaulGood afternoon,
Recently Paul did a “Fireside Chat” with National Bank, I had the opportunity to watch the video and below I have listed some of the highlights form the discussion:
Link to the interview :
https://onlinexperiences.com/Launch/Event/ShowKey=129469 (you must register to watch)
Current production for SGY is a little over 17,000 barrels per day
With their current drilling program it should take production over 20,000 barrels per day by spring break up
Low decline rates currently sitting at 17-18%
With the BDC/EDC money they are drilling 31 new wells in the 30 of which will be in the Spraky and extended term of credit facility out till the end of 2021.
With the SRP money has helped to reduce abandonment liability
Sparky play is a game changer, will be over 11,000 barrels per day with the new drilling program. Sparky currently has over 500 potential drill sites and a 14/15 year inventory for SGY. The sparky play is either the best or second best play in Canada, it was compared to the Clear Water asset. Sparky is under the radar for the general market at this time. The economics are in the top 3 plays in Canada according to National Bank. Sparky is low sulphur crude and they have the option on how they can sell it depending on pricing, this will allow them to maximize the net back.
SGY break even price is approximately $47-48/barrel. For every dollar over that price, free cash flow goes up by between 7-8 million.
Priority is balance sheet, drilling, and at some point dividend. (this will not happen for a while)
SGY has looked at and is looking at selling non-core assets and are open to conversations.
SGY has looked at potently selling a portion of the Sparky asset, however they are more likely to look at a joint venture. Where they would maintain a dominant operating position. They have had some conversation on this already. There are lots of options on what the company can do in the Sparky.
On a separate note SGY anticipates releasing guidance on January 28th.
Good luck to all the longs!
Kid