Lloydminister assets sold! West Septimus gas plant full!Wow, great news this morning from Crew. A nice way to start our day!
Lloydminster heavy oil assets are finally gone. What a relief for us shareholders.
"Divesting of these assets sets the stage for Crew to streamline operations and improve efficiencies going forward while reducing our overall Asset Retirement Obligation (“ARO”) liabilities by nearly 40%, representing approximately $34.5 million associated with 609 gross (539 net) wellbores."
Think of it, it's like paying off $34.5 million in debt not to mention the time and energy it takes to abandon, reclaim, cancel lease payments, etc. All that weight has now been lifted from Crew's shoulders.
The $10.3 million in proceeds can be used to replace the 1050 Boe of Lloyd production (539 net wells) with one Groundbirch 3 well pad. Outstanding!
I didn't realize that while Lloyd represented only 4% of Crew's total production it accounted for 19% of Crew's operating costs! The savings will be a whopping $0.70 per boe! I am blown away.
"Crew is also very pleased to confirm that after the impact of the Lloydminster sale, our current production volumes have recently reached 30,000 boe1 per day with record net natural gas sales production of 149 mmcf per day based on field estimates. This level of natural gas production is the highest ever realized by the Company, being produced into a very strong commodity price environment, and reflects the success of Crew’s drilling program to date in 2021."
Even after selling Lloyd, Crew's production has reached 30,000 Boe/day. The 4-17 pad is currently flowing at restricted rates of 32 Mmcf/day. These wells are averaging 10 Mmcf/day per well! They have hit the jackpot with these wells, no wonder they were keeping quiet about their production volumes. Crew has 5 new well permits approved for this area which could yield an additional 50 Mmcf/day of production.They don't mention liquid volumes which should be tremendous.
Now where do they put all of this gas?
" West Septimus gas processing facility recently achieved a new throughput record of 125 mmcf per day with working interest sales of 115 mmcf per day (119 mmcf gross) and a nameplate capacity of 120 mmcf per day of sales gas."
So they are slamming 119 Mmcf/day through the West Septimus plant with a nameplate capacity of 120 Mmcf/day sales gas at a time when commodity prices are outstanding and their hedges are unwinding.
Can it get any better? Oh I almost forgot, they are going to fill up Septimus as well.
"Crew has made infrastructure modifications that allow volumes from the 4-17 pad to flow to, and be processed at, our Septimus gas processing facility, which currently has approximately 40 mmcf per day of excess capacity. This will accommodate new production from the five-well 4-21 pad at West Septimus that is scheduled to begin producing in mid-December."
All in all BEYOND great news today. GLTA
BTO