Post by
dmacd on Nov 29, 2011 1:44pm
December Guidance Thoughts
Two drilling rigs are expected to operate in Redwater to exceed a year end exit rate of 9,000 boepd. A guidance update is expected in mid-December per the Q4 report. I will challenge WFE to outline a plan to average 10,000 boepd in Q1. That might motivate investors to bridge their SP target to line up with the intermediates, and might encourage investors to increase their positions.
Some thoughts to achieve this are:
- additional drilling rigs at Redwater and Provost and good execution during the cold winter period
- increased production hedging in 2012 to secure cash flow and keep debt ratio under control
- sour gas remedies for the Orion properties, if possible to start implementing early solutions
WFE might benefit from outlining how they come up with their de-risking factor to the analysts so the upside is more aligned. The might also benefit from providing a 2 year look ahead.