RE:2% Decline Rates - Ha HaWow, never heard any of that before...
MyHoneyPot wrote: All of the Kakwa play area is equiped with sour processing facilities, this represents very expensive infastructure, this represents almost 3 Billion dollars in infastructure.
Currently processsing at 180,000 boe a day, it likely could operate at 25% higher capacity.
So why is management neglecting to utilize 750 million dollars worth of infastructure, i guess they could just let it rust?, to address a 2% lower decline rate, in a enviroment where prices have doubled. Turning their back on less than 1/2 cycles economics, unbelievable.
Arc soluitons to solves the unused infastructure problem is to spend another 600 million dollars to pursue a high risk full cycle project with treaty 8 concerns. (Attachie)
Sounds brillant to me, however it does not sound like a good way to improve share holder value.
Management continues to tout their 25 year legacy history of returning value to shareholders, but that was grounded in returning 25-30% of cashflow directly to shareholders.
It simply does not sound like management has the same commitment to shareholders, they would rather chase the pet projects then pay shareholders.
Confidence in management is reflected in the share price, and share prices are trading at 50% of the value.
IMHO