RE:just bot a new position Carbonbull wrote: This has been derisked by infill drilling results , clear that terminal value is a factor of at least 8x on remediation liability , perhaps much more if oil maintains a positive bias , my analysis done at $70 wti for conservative reasons. A very valid business plan to buy out of love old oil plays milk the remaining reserves and deal efficently with remediation , suspect we will hear of an acquisition soon that will be accretive !!
infill drilling failing to maintain production with its drop below 20K bbl day for first time. In three months wtyhey will be in the 18K bbl region and in 12 mths 15K bbl day even after blowing $300M on infill drilling etc.
They made a huge miscalculation / mistake on the second rig they lost because could not come up with LC to guarantee payment.
No one gives Canadians credit in the world without SBLC at a min coupled with entire conract value 25% mobilization payment.