RE:RE:Crew Energy Announces Year End 2021 Reserves My quick take is that Crew has done well. They have added 24.6 million barrels of pdp plus replaced the 9.7 million barrels that were produced. They also disposed (sold) 0.551 million bbls of heavy crude pdp . So total added by drilling was 34.85 million barrels which based on the 24 wells completed by Crew works out to an average 1.45 million barrels per well. Disappointing to me as I was expecting closer to 2 million barrels per well , but then again I suppose all the wells were not ERH wells.
Overall though, the recycle ratio on PDP was 4.0 which is certainly encouraging and the reason that I like growth companies
The reserve valuations seem quite conservative with WTI in the 73 to 80 range going forward and AECO in the 3- 4 $ range . Bringing pricing up to current levels would increase the NAV (10) by roughly 40% for PDP 1P and 2P valuations
Furthermore it seems either no new reserves or very few reserves have yet been added from the GroundBirch Area in spite of the fact that Crew built a new pipeline to tie the production into their gas plant.
So all in all , I believe that Crew has demonstrated that their assets are worth close to 15$ per share plus the value of the land. As a going concern , however with continued drilling the assets over time will prove to be many times that number !!