RE:RE:RE:2024 budget and SAGD impactThe CIBC flash research debt assumptions are interesting - they are suggesting a net debt of 7 million in 2024 - not sure how they get to that number unless they are taking into account the "50 million of capital items in the budget that can be eliminated or deferred to assist the project financing in the event of a significant decline in oil pricing". In any event even if they have a debt of about 100 milllion at the end of this project that is significantly less than the 170 million debt they had on their balance sheet two years ago in their 2021 Q3 report.
The payback period of 18 months for this project is positive - and the fact they can replicate this in two other locations if the Redford project is a success is very promising - nobody has a crystal ball for oil prices but if they are correct in their assumptons that this project will add 105 million in cash flow in 2026 that is a significant bump to their 2024 number of 290 milliion - their debt can be quickly paid off in that scenario although they may choose to retain cash flow for a second thermal project if Redford is a success.