RE:Should Baytex sell off Canadian operations? The problem is the Canadian assets Baytex should sell like the viking wouldnt get alot of value right now...cost of borrowing is high that is also hurting asset values and also alot of mature assets on the market right now for sale.
I think if viking play was stronger in a lower priced oil enviroment BTE wouldnt have had to buy the USA assets ranger oil. Ranger oil gave BTE drilling locations that are eonomic at 65-70 dollar oil and lots of viking shouldnt be drilled at that oil price range.
BTE really should be raidly drilling high grade of their viking invenotry whenever oil is over 80..
But at lower oil prices, BTE has the drilling inventory to pause viking drilling if oil price lowers.
I think buying ranger oil was to make BTE stronger to withstand any type of oil price pullback. Some of ranger top tier drilling locations can probably be drilled at 50 oil and viking cant.
And clearwater and duvernay need to stay together as Clearwater FCF can fund duvernay drilling faster and harder and it likely will happen in 2024.
BTE uses 10.5m duvernay well cost but must be ways to lower this cost in a contiuous development program like contracting a rig for a year solid drilling but at lower day rate.
Duvernay wells staying power of being 500 plus barrels per day at month 6 is impressive.
Some of the good duvernay wells in the sweet spot are going to do 200-300k barrels of oil in 3-4 years after well coming online. Plus NG and NGl revenue non top of this.
BTE should be drilling hard in this price enviroment...lots of the type of oil wells BTE drills have a great deal of reserves in that well produced in first year. But a sharp pullback in drilling if oil is ever under 70.
Just my 2 cents.