Suncor Energy Inc T.SU

Well productivity

[marketsense]

Very interesting comments from CNQ and CPG regarding multi leg,  tight spacing
horizontal drilling without expensive fracking which has generated much green
opposition.  I refer you to the Baytex site where drifter quoted these comments
from both CNQ and CPG.

These new drilling applications are enhancing significantly well pool production and
making marginally economic or uneconomic pools now highy profitable.  Not only higher
production but moderately lower cost to drill is a game changer in Canada.

The interesting takeaway from both companies comments is the lack of positive 
response by the analyst community and the market in general.  Its almost a case
so what,  who cares which I find odd.  This type of drilling is not suitable for shales
such as the Permian in Texas but is highly applicable to Canadas heavy oil pools.

While oil is under pressure for now,  I think there is opportunity in Cdn oils that is
being disregarded and unrecognized.  Now that the sector has sold off,  I'm liking
the opportunity to buy a few of these names.  The Cleawater play is demonstrating
the tremendous success in using this technique,  and even better this technique
can be used on any play to enhance productivity and economics.

[mrbb]

yes, current (last 2 years) hot play now in north america is the clearwater, not requiring fracking. I've pushed this reservoir exploitation idea of multi legs to management 5 years ago, no go, management too chicken to experiment, not even a pilot well. They wanted each leg lined which wrecks the economic. Big companies are follower, not leader in new idea. Management is risk adverse to keep

[marketsense]

From my understanding and I am no expert in this field,  those Clearwater lands are sitting on existing well pool reserves which are quite substantial but with  conventional drilling and well field engineering,  were marginal or sub economic. Now with mult leg drilling they are highly profitable.  Most will recover total costs within a few months so payout ratios are fantastic.

[mrbb]

it's no slam dunk. Look at RBY, a pure clearwater play stock run by veteran Riddell Rose, a 5$ stock is now $1.7's stock because their clearwater ain't panning out. IE, we are seeing some failure in this early part of the clearwater game.  just like shale oil, initial phase can have great wells but mother nature doesn't yield geology consistently like pudding all around. It&

[Experienced]

So you think Headwater will suffer the same fate?

[mrbb]

headwater was early mover, so they got in the core area, lands they bought from CVE last year. Most of the good lands are privately held, so no public producton data.  The multi lateral is not a new technology, it was more gut to do thing differently using existing technology.  HWX good geology also help to extend profitability with waterflooding.   

[Experienced]

Thanks for that mrbb.  Sent you a PM with further questions.

[MigraineCall]

Experienced, I had some good info on Clearwater, but can only find these links in my archives at the moment: https://investingwhisperer.com/the-first-new-north-american-oil-play-in-a-decade-the-clearwater/ https://twitter.com/garquake/status/1524200103757717505

[Experienced]

Thanks Migraine - much appreciated

[mrbb]

what i said about "Reserves wise, oilsands and east coast offshore still king."

[doggiestyle]

They are not being rewarded for this investment - In fact they are being punished for it. The money is all going inot the US high dividend payers.  Cdn companies need to get the message - only the very best play are worthy of ANY Capex spend whatsoever. We are slow to learn.  

[Re1ndeer2]

BTE under $5 is a steal, and TVE at $3.75 is a Gift...Patience for another week....