RE:RE:Potential C02 Injection in the west fields?
I saw that, very interesting development. Predator is essentially giving Touchstone a free ride on their Capex. If it works, Touchstone will have even more cash to deploy. Paul said that 2 drills should be enough, one for exploration and drilling western fields (this will be the new Canadian telescopic rig capable of hitting 18k feet). It will be very interesting to see what they find at Cascadura deep once they can get past 10,039 feet. This was already the best well to date, over 1300 feet of pay. Can't wait to see what lies beneath. If they can increase the size of this play by another 20-30%, it would be a great use of Capex. There will be delays to be sure, but there is a whole ocean of oil and gas beneath our feet and plenty of opportunities to put cash back to work it seems. C02 Injection is just another avenue, one of many potential layers of cash the board will have to figure out how to best deploy. With the shares trading significantly below their intrinsic value, would be nice to see them buy back 5% of the stock each year along with a small dividend. The drill bit isn't the only tool to increasing value per share. Personally, I like well executed buybacks more than I like dividends. There are no taxes and we own more of the business each and every year without doing a thing.