RE:RE:Well productivityFrom my understanding and I am no expert in this field, those Clearwater lands
are sitting on existing well pool reserves which are quite substantial but with
conventional drilling and well field engineering, were marginal or sub economic.
Now with mult leg drilling they are highly profitable. Most will recover total costs
within a few months so payout ratios are fantastic.
As for depletion rates, I have no information yet as compared to conventional well
pools. Maybe someone has that kind of data and could compare it. Bottom line
is when you see some majors like CNQ and CPG embracing this new appraoch,
I would think in the next big uspwing in oil, these names should do very well. I
also follow BTE, TVR, and HWX for the same reason although with the exception
of Baytex, the other two are junior players.
That all aside, I fully realize this does not affect SU as they are strctly in a different
business. What is interesting to me about all of this is how ho hum the reaction is
to a Cdn innovation that is exciting and highly profitable. If this was in the Eagle
Ford, the Americans would be all over it and Biden would be euphoric over an American success in the oil patch. How things have changed from a year ago.