Baaken: They have one rig
drilling on average 16 days per well. One rig is enough for this play. They are
deciding engineering like spacing, pipelines etc..
Peace River: Not high up on their
present plans for development, nor will be in the foreseeable future it seems. This
pretty much makes them a two play company for the most part.
Belly River: This is the one they
are extremely high on. It has 4X the hydrocabons as opposed to the Baaken and
that oil is 42-44 gravity.
Gas here has low value with CO2 so
injection is a better choice but has 65b per million of liquids. They have the
dominant position, as we know, so much so that others who look do just that,
look. That position contains the infrastructure such as roads, pipes for
example and that infrastructure is worth about $100 million. The gas takeaway is very good being
underutilized pipes. Nice to not have constrictions.
Reserves can only be booked in Canada
by distance from an existing well/s. One rig is currently drilling to firm that
up now to exploit the reserves. While the others are in development phase.
Development phase is that they now think
they know the lateral lengths, spacing and path for the bits to follow. Sounds
like a solid two years of drilling these wells.
Asked if they will do any more
capital increases. No, was the answer. The balance sheet looked good. Their
credit line will be increased too. Was that an absolute no? There could be for
an increase for more rigs but Marty said that only to say anything is possible
but he didn’t see it.
Asked about acquisitions both Marty and Clayton said they look all the time. They have a short list to look at for requirements. Marty said they want land, if it doesn't have at least 100 drill locations they pass.
Finally, someone asked Marty that
two years ago how he felt and he said “Good” last year he said “Very Good” and
this year he said “Euphoric”.
I guess his words sum up how he
thinks they are doing………….
Think I got the facts pretty closer,