Post by
jimgeorge on Sep 06, 2013 7:21pm
Sherbrooke1
Sherbrooke,
Many good questions.
First, the mere fact that other operators are buying companies like Invictus and not buying NVS tells me that NVS really isn't as good as they look. We're not privy to all the real details behind these companys' assets...
And in terms of reserve booking, RRX is at about 60% undeveloped reserves, so they are a little less aggressive than NVS. Regardless, other bidders obviously felt NVS' reserves or land or future locations didn't merit a bid above Yancheng's. And if they didn't bid before, they're not going to bid now and pay extra break fees plus a sizeable premium over Yancheng's bid.
As for single well batteries, typically there would be 1- 400 barrel tank for the Viking - about 20 days production. But no matter how wet the spring was, all the other operators in the area I've talked to got all their oil trucked out by June. I don't think that's an issue.