POU Advantage (Fox Drilling)To be an early mover in any frontier play, you need some way to get closer to what is really happening in the field, screwups, logs, and cost control.
That is why FOX Drilling, with its high end, walking rigs, triples.
POU contracts FOX drilling to drill all their wells, and they charge industry rates, and get paid in funny money. Its all the same company, FOX has one dedicated client, and they are willing to do what ever that client needs.
So 10 million dollars wells are not really 10 million for POU, they significantly less, and their drilled with the best talent because POU know the value of quality well bores.
These plays always become better optimized over time, with longer and cheaper wells, and FOX drilling company has a hot line to JR, so he knows what is happening all the time.
You need every advantage to be successful in this business, and POU has a big advantage in the field, experience, cost control, good execution.
There has not been a well drilled in Laird/Horn River with modern technology in 10 years, and we know their are huge reserves up with, Liard/Hornriver in the top 10 gas basins in the world. Very close to LNG terminals.
May be a game changer in the not to distant future, POU my guess will have a 2025 well drilled up there.
IMHO
MHP