RE:RE:RE:RE:Cardium Competitor AnalysisKramer I think you and some of the other posters need to start evaluting Natural Gas as it pertains to the Cardium players.in a different light.
Since like early May, the economics on the NG/Condy side of the cardium are like equal if not better then alot of the oily drilling opportuntie in the cardium. Talking on new drills.
And the companies are signaling this shift.
Petrus drilled last well on NG/Condy side of their stuff and they have more oily options.
Obsidian hasnt drilled it, but they licensed a gas well in falher zone in willy.
Yangarra recently licenced 4 wells on NG/Condy side.
Drilled one in May here.
Since NG AECO forward curve shifted in like end of April to mid May....you can hedge average price of 3.10-3.20 a MCF for next 9 months. Condenstate also doesn't have the differential problem but the rates on condy usually are not massive...50 barrels a day.
But now a NG/CONDY/NGL well is equal to a 200 barrels a day oil well in revenue.
Really really shifted.
All companies can not hold an invididual well at 200 barrels of oil for that many months...but NG can hold really strong for 16 months.
Year 2 on a NG/CONDY well would wipe the floor on many of the oily side wells for revenue, if current assumptions hold.
That is a real problem here for the shorts....everything has become stronger for YGR.
So much more of our land is drillable.
YGR sacrifices production numbers when it chases for oil. They can grow BOE faster if they chase NG/CONDY side. Finally economic that we have options for more then just focusing on oil.
Kramerkarma wrote:
congrats on a great day ! As for well + site repairs ... cross that bridge when we get there. Squeeze the shorts! We're all team oil + gas.