RE:RE:They need more I.R. effort or outreach. No amount of promotion is going to alter mindset of some of retail shareholders left in this junior game.
In certain companies, old mature fields that have like 400 plus wells producing 1000 boe are just not profitable right now. Not every 1k boe of production has remotely same cash flow right now.
Remember lots of the pre 2005 vertical wells are so spread out with vertical wells and have lots of property tax, surface lease rent,
i thought I read average fixed cost to run an oil well is 5k which the gov used for assumptions but nit sure how old that number is. 5k fixed a month plus a per barrel of 10 dollars a barrel operating.
add in low aeco and continuing regulatory emissions pressures and I think lots of these properties are for sale right now.
suppsoely surge energy has alot of their Alberta property for sale and majority of it is quite mature and is on back end of useful life.
I read a stat the other day that from I think it was 2000-2005 like over 40000 vertical wells weeee drilled so average of like 8000 vertical wells drilled a year. After 2005 a big decline in vertical wells drilled until 2024 and basically odd evuluation well or oil sands abit but hardly any vertical wells drilled last 10 years.
one of the best features about ygr is almost everything they have is after 2017 horizontal well on multi well pad. Can can get way under the fixed 5k per well cost by being on a pad and getting the economies of scale.
surge is reinventing itself as a Sask company, less comepitiom there and going for that niche.
majority of these management teams of the mature companies look eager to get into newer assets that have a lower break even cost.