Post by
Valueinvestor9 on Sep 01, 2015 12:28pm
Decline Rates on Wells=declining Production
Decline Rates on Wells=declining Production
With the reduced capital program, the question has to be asked, can the company sustain its production. The 1-11 and 8-11 represent 1.5 Wells to Kicking Horse, Questerre owns the other .5 of the well. These previous two wells have been brought on production. What is next? The company plans to complete the 13-23 and the 13-25, which represent 1.75 net wells. The question is: does this program sustain production or does it grow or does production decline. Where is the forecast for production, especially in this commodity price cycle?
Please remember that the company faces serious land expiries coming up in approximately a little over a year. I would ask your broker/adviser if those lands were to expire, would the value of the company decline. I know one geologist with a 2% GOR that will be unhappy. The 2% GOR is an impediment to farming the lands out. It is like an anchor around the neck of a horse sinking in quick sand.
By the way, I am friends with Glenn Carley the Chairman of Painted Pony. The employee stated that I criticized Painted Pony. That is not true, but that is consistent with a great deal what the employee does. I ask questions, and recommend to investors to ask questions. Only in an environment of deception are questions not desired. Ask questions and have your Broker/Adviser ask questions.
Kicking Horse is facing major challenges to sustain production, they need to do a financing. Dilution happens when companies issue shares. Just ask questions.