FOX DRILLING Fox drilling has 7 triple 1500 H.P. rigs and one other 1,000 H.P. drilling rig.
Companies like Percision have increased their day rates 73% over the last 7 quarters. They also have the overhead of a public company, expensive management, and world wide exposure. Fox drilling will keep all the it rigs working, and likely in special cases POU will hire out other drilling rigs.
Fox drilling bills POU based on Comerical rates, and generates earnings as a subsiduary of Paramount. So POU drills wells at large discounts compared to other energy companies, ( small management, low costs, top tier rigs, no marketing, dedicated client, no debt )
Duvernay/Montney/Clearwater Wells So POU are drilling wells at 20-25% cheaper than the industry at whole. They are also drilling wells with their own top percentile people, so they consistently get the best information and have the best communicaiton with POU management. They have the same decicated crews that will work and develop expertise in their core areas, Wapiti, Karr, Kaybob Duvernay, Wilesden Green, Clearwater.
Point In Case POU has DCET of 12 million for their Kaybob Duvernay wells on their type curves, however the real costs to POU will be significantly less (approx 25%).
Also today with the Canadian dollar trading in the 72 cent range, we are going to see more inflation in the Canadian Market. August Kaybob New wells So the 3 well pad that produced
103,944 barrels of condensate in the month of August, ***Amazing***
With a low canadian dollar (.72) even 85 dollar wti is $118 canadian and would represent 103944 * 120 (condensate is premium) = 12,473,000 million dollars.
POU has control of its costs and control of its destiny.
So POU has unmatched economics in the Canadian Energy Industry.
IMHO