RE:RE:RE:RE:RE:My last post: Only 1 Typo?1234bmth wrote: So, if you know all these advantages you think those who sold off yesterday they don't know, where do you get this information that Clearwater will pay for itself in weeks? As for debt we all know how much they pay, they pay the excess of FCF each quarter which was $137 in Q4 and $121 in Q1. and I don't remember the numbers before Q4. Now they are reducing the power of getting debt down by spending more on drilling. Let's say in 3 months they spend another $200M in drilling then suddenly oil drops to 65 to $70. What would help the company paying that $200M to reduce debt or drilling. This is the time of uncertainty if they bring debt at $800M or lower then I agree for aggressive drilling not now, Covid pandemic was a good example.
I remember reading the Clearwater wells cost between 1.2 and 1.5 Million dollars each just can't find the info. Here's what I did find
Source: Headwater Exploration Investor Presentation Declining drilling and advances in drilling technology mean that they can drill these wells
quickly and
extremely accurately.
These are mile long laterals a couple hundred feet apart. The tight spacing of the laterals removes any need to frac. The wells require no casing in the lateral at all – another savings – and are completed open-hole.
It is bare bones and cheap, cheap, cheap.
Headwater estimates $1.35 million per well at Marten Hills. Tamarack’s capital costs at Nipisi are $1.1 million per well. Low costs, low water-cuts, shallow decline curves and plentiful infrastructure add up to very economic wells even if they aren’t gushers. The best wells in the Tier 1 area are coming onstream with an IP30 of ~600 bbl/d. It’s a good rate, but remember it is coming from 8 laterals. https://investingwhisperer.com/the-first-new-north-american-oil-play-in-a-decade-the-clearwater/ So if my math is correct on a 600 barrels a day at a $100 a day she's $1.8 Million Dollars in just four weeks. WOW just paid for this well,
BAYTEX has three wells averaging 30-day initial production rates of 1,100 bbl/d per well that's a whooping 3.3 MILLION DOLLARS PER WELL. Looks like we already paid for six wells.