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clock Created with Sketch. 18/01/22
20:55
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Originally posted by Minim Cove:
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Mark, the higher the oil price will allow ATS to spend more per well whilst enabling the well economics to stack up. A good example was when Encana owned the asset each of their wells were costing between $15-$20 mill per well. Each time they encountered a problem they just ploughed ahead because the oil price was $90-$130/barrel therefore the numbers albeit not brilliant still added up. However when the oil price collapsed they found themselves heavily geared and could not see a way of drilling a well at $10mill hence from an economic sense thought best to offload the asset.
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agreed with this.
