RE:1 Rig Working in NE B.C.For a guy who was crying they needed to pour everything into Kakwa last year; now they are walking a tight rope by doing it. ROF
Arx is spending money at Sunrise increasing production by 80,000mmcfd.
Production anticipated to go up 2% very similar to what TOU is doing. TOU wanted to keep pace with demand growth. Good move ARX.
Laugh at the "my understanding" and "my guess" comments.............no one cares doofus.
MyHoneyPot wrote: With all of ARX rigs working in Kakwa, and only 1 rig working in NE BC, my guess is that ARX is walking a tight rope, in terms of maintaining produciton.
They did receive a hand full of licenses in the recent release, but really to maintian 160,000 boe/day of production you are going to have to drill, and this is why they have extra dollars in the budget to drill once the regulatory issues get cleared up. They are seeing declines and can not backfill the production.
Terry is still pounding his fist regarding Attachie and claims it will take 18 months to ramp up once they see regulatory clarity, and with that the real economics of that play goind forward (Not some Fairy Tail). Right now ARX is in Regulatory Limbo and Terry is taking a big risk with shareholders equity.
My guess their only hope is to ramp up Kakwa, and use it as a swing producer so that their production does not fall to zero in NE BC.
Listen to the earning presentation yourself, Terry is still touchy about Kakwa, sings the merrits of Sunrise and postage stamp play area, and has all the marble lined up hoping desperately for Attachie to happen.
Really if Attachie and Sunrise to not come through for ARX they are in big trouble. Management will be handed their boxes and walk out, that is my guess.
IMHO