Hoping for beginning of continuous drilling program....
...with Canadian Star Valley rig. I am still hopeful that 2022 will begin a multi-year period of successful execution and robust growth in production and revenues. But other posters are right that it is frustrating to have the company stalled out and having such a difficult time moving forward from a highly successful 5 well exploration program to something a lot more that will include DEVELOPMENT, growth in production and revenues, and a second fully self-funded phase of exploration too.
I have been thinking a lot about what has been holding us back and it comes down to three main things.
1. Trinidad time - just hard to move ahead quickly and efficiently - especially on land. Even when the Minister of Energy is on your side and the country badly wants and needs natural gas production to increase. Aggravated by Covid time. Aggravated by badness in the world, messed up supply chains, etc.
2. Real worry about the nature of the tax and royalty scheme which will take a lot off the potential profits. The gas price of about $2.50 an MCF worries some but me not so much since pay is at wellhead and TXP costs on three completed wells is about 5 cents operational costs.
3. Real question whether the one well continuous drilling program can be run efficiently and start to churn out multiple wells in rapid sequence and then get them quickly on-line. If that could happen anywhere close to what happens in major oil and gas basins elsewhere there would be a stream of impactful wells coming on line one after another all year long.
Don't forget that TXP has a minimal use contract for 120 days of Star Valley rig in 2022 and hopes to use Star Valley full time in 2023 and 2024.
For comparison look at the 2022 budget for OVV for its major producing areas in Canada and in US. TILS are wells drilled, completed and turned into production. Montney - 2 rigs, 65 TILS. Anadarko - 2 rigs, 60 TILS. Permian - 3 rigs, 65 TILS, and Bakken 2 rigs, 30 TILS. The Bakken wells are deeper and more complicated so each rig will add only 15 TILS a year there. So even if the STAR VALLEY could do 9 wells a year that would mean Coho-2 and two Coora wells and Royston-1 DT and Royston Deep, and Kraken by end of this year and all 8 Cascadura A and B development wells long before end of 2023. That kind of pacing would transform the company and start to fulfill the wall of cash concept that Paul started talking about when the Cascadura field was discovered.