RE:RE:RE:RE:RE:RE:RE:RE:$7.5You have to be pretty stupid to ring up more debt in this market unless you drill new wells that are paying back so handsomly it is a no brainer.
Or unless you do a takeover, and then it well better be a darn good one.
So I don't think Peyto's debt will be any higher than at present unless they can bring in so much cashflow within 12 months.
Lets put it this way, you can make a killing right now at $4US NG. So any new wells with a quick payoff you hedge all your production at these prices and get all your costs back.
Problems I see are keeping up with decline rates at higher production levels, new wells deplete faster than older ones. So you don't want to go one way too far new drilling against older wells. Don't cherrypick all your best spots so nothing is left down the road like the shale guys did in the U.S.
I really would like to see some improvement at least due to this winter. It does not seem to be adding up into better stock prices.
However, I did add more this week at lower prices so can't complain I guess.