RE:RE:RE:Tough one here
daniel004 wrote: The only oil stock I ever owned that went to zero was into SAGD.
https://stockhouse.com/companies/bullboard?symbol=stpjf Bad timing in 2014 and a costly rookie mistake on my part. No one to blame but myself.
Making and delivering steam seems easy but it's not. Not to mention the ESG downside.
STP still shows up in my holdings, which is always a reminder. Never again.
Playacar wrote: I could not agree with you more. I know nothing about sage and my gut feeling is that cardinal are making a big mistake. If you look at there presentation nobody has had to drill down to 600 feet yet here is cardinal with no real experience doing this. In my opinion. Cardinal should be delaying this project for at least a year. Pay of the debt and return more money to the shareholders. Considering selling off my position. Anybody know about the lands that cardinal is going to drill on and why didn't the previous owners drill if it's so valuable
I'm pretty sure SAGD is very similar to water flood tech, but more effective and efficient..
Most of the increased costs for it will be for the steam generation unit and setup, but the payoff is that it will get more oil, likely easier, and longer than other standard and water flooded wells by my understanding...
I wouldn't be scared of the method as I would assume that STP didn't have the financial resources to weather the oil price going from 100 down to 40, which would have been the major problem. CJ is in a much better fiscal position and looks to be legging into this new system...
I too still hold shares of a dead oil company, TBE (Twin Butte Energy) which died while making money, The banks called in all the loans at term instead of extending even while they were generating FCF I think it's was around 2X loan costs even at the low oil price or something, they just had a ton of debt to work through and no financial partners to work with them because of the collapse compounded by the start of ESG hating oil companies at the time... I too had time to get out, but I was newer to investing and didn't think the banks would kill something that was generating money when other companies were in much worse shape from a profit generation standpoint...