RE:NR Jan 31/22 thoughtsMy blunt thoughts on press release, read at your own risk lol.
In the context of Cardium stocks, OBE press release is a bad signal for BNE...and too a lessor extent IPO. Why?
Well look at OBE's drilling plans, only drilling 2 Pembina wells in first half and 6 in second half. Cardium must have weakest financial returns on payback periods. Lots of Pembina for BNE or OBE likely doesnt pay out on alot of wells at 70 wti in 12 montths. OBE probably sweet spot drilling in Cardium on wells that are tier 1 and they now can payback out decently in 70 wti. BEcause OBE has other plays they can do this but BNE cant...does anything think BNE has 44 tier 1 locatins for 2023? I like OBE's plan so much more than BNE.
I don't own any oil and gas stocks right now but I dont get how someone could feel safer in BNE versus OBE.
I think prudently OBE's capex is designed just in case oil prices are lower.
Still doing lots in Peace river in my view to have producution ready for when transmountain is open. 7 in second half.
Captial budget designed with shareholder returns in mind.
Lower capex will also allow OBE to room to buy someone out in Cardium if sh*t hits fan and other companies get desperate.
Smart plan for OBE, most of first half drilling is viiking and that can handle if oil hits 70 and payback decent.
Worst case is for comanies to get caught with wells that need high oil right when tied in...ouch cough like BNE.