Share
8,053 Posts.
lightbulb Created with Sketch. 659
clock Created with Sketch. 19/01/22
10:44
Share
Originally posted by Minim Cove:
↑
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.
Expand
MC, I appreciate your reply - it looks as if this is the year they need to make their move? Expecting fossil fuels to have a good run while the World haphazardly moves towards low emissions energy!
(20min delay)