Post by
sportstermathew on Jan 05, 2024 10:01am
Monthly report...
I may have read this wrong but is this a 20% cost of total normally? or a 20% discount?
Capital spending in November included approximately $10 million of 3D seismic data to cover the vast majority of newly acquired lands as we took advantage of preferred seismic licensing fees at 20% of typical costs.
From the monthly report 2nd column.
A few questions I have not seen the answers to are with their old lands they had in inventory, what percentage of those were drillable good quality areas? We all assume all land is good land in this area but is this really so?
Also, with the new drilling extended Reach Horizontal many kilometers long, they can pick an easier site area if there was a river or mountain in the way and just drill right under it all. So was most of their land fairly flat and easily accessible or not??
At this stage are they able to bring down debt at all with the increased drilling totals should prices rebound even though they are fairly hedged there will be a substantial amount of new production that is not hedged.
I believe Peyto can increase production this year by much more with little outlay as Repsol is very much if not better than the other deals where they can improve production dramatically with some tweaks here and there and add in new production without huge outlay because of the pipelines and available facilities (gas plant capacity) they now have at their disposal.
On top of all this there must be some huge benefits to the older Peyto properties where more efficiencies with pipelines and gas plants can be tweaked not to mention the more you have the more people can be efficient.
Peyto of course has to upgrade a lot of facilities to their high standards and low emmisions targets but it is in their interest with higher production.
Here we are just close to starting up Cascades if not done so already, and 2025/26 right around the corner for LNG. Which is much more efficient than the pipelines across BC being built.