RE:RE:Looking for inventory.Kherson wrote: Bennys65 wrote: TVE presentation has a nice graph showing tier 1,2,3,inventory in the clearwater for the players.Quick look will show that hwx needs to add quality inventory.That might happen as exploration results come in strating in Jan.Lands sales are a possibility but land is now very exspensive.Other than Spur woodcote has put together a lot of land and their production is over 4000bpd.Dont know about the quality.First half of 2023 shoild give us some hints as to where we are going.Having said that nothing wrong with milking what we have and spitting out and increasing div.FCF on hwx 5 yr plan would support an 1,40 div end of 2024 which would support a 20 stockprice at 7%
But if Headwater drills anymore dusters, they will have do some sort of M&A.
Now looking like Headwater has put all of their eggs in one basket...
I find it very interesting that Cardinal is claiming payout on their Clearwater Nipisi 4 well pad of only 90 days...
Kherson
Bought some last week for a short term hold since I felt that it was oversold and sold earlier this week for a small gain.
Agree with your view that another duster would not be a good thing.
Reasons I sold my stake a bit earlier than originally planned was that upon futher thought I had these concerns....
1....the dry holes in an exploratory well in itself is not necessarily a bad thing ( mining companies have the same all the time to find the boundaries of the deposit) but the fact that Roszell who have the greatest respect for decided to move the rig elsewhere suggests that he doesn't think that that part of their land holdings is worth anything or at most the cost benefit analysis wasn't great.
2....the area where he is moving the drilling rigs is outside the core Marten Hills area and their land holdings there aren't that big.....7 sections I think
3....Points 1 and 2 then beg the question are to why Cenovous sold their land position to Headwater and then subsequently sold their HWX equity holdings later
HWX is still worth watching for sure and I may well buy back in but right now it seems to that are a number of key unanswered questions that add to the risk of holding shares right now IMO