RE:RE:Marwayne BOREHOLES Are 1,300 Meters LONG & NOT 1,100 As I ..There are hundreds if not thousand of 800m well pair production histories available to compare to our commerical pilot.
With 100% control of Sunrise, CVE has stated they intend to increase laterals from 800m to 1100m. I gues that means new laterals.
CVE cost for the 50% Sunrise oilsands ranges from cash + "cash paid over ~6 Qs" + Bay du Norte.
Low end $1.2 Billion = $600 million + $ 600 million + $1 = $48,000 per flowing barrels
Mid end = $600+$600+$800 million guess = greater than $80,000 per flowing barrels
High end = anyone's guess = $wow per flowing mama mia!!
CVE's 35% share of est capital for Bay du Norte works out to $3.5 to $4.2 billion (most likely US$), a capital obligation they no longer have on the books. Traded off risk but also opportunity cost of their share of speculated EUR x.x billion barrels of product. Some have peggeg more than US$800 NPV on this 8 years to build and est 30 years production project, but thats sound low. So that kind of risk, (east coast project now in the hands of 2 foreign companies = way to go Canada :( cry) should carry much larger ultimate financial /taxation / jobs / etc returns.
Compared to AXE est per flowing barrels:
Heavy oil $16,000
Oilsands $18,000
Many I write with likes CVE's 50% purchase of Sunrise and the departure of Bay du Norte. CVE will continue to pay down debt, reduced offshore risk/obligation, and have enlarged their capacity to grow their oilsand / heavy oil acreages. That's good news for AXE.
Of course that's IMHO