MM, I agree with your opinion although would change "only" risk to "main" risk just to cover some bases. SSN is now a producer and an alternative to drilling (if increasing production is the goal) would be to focus on reliability and availability of existing facilities. Reliability improvements are cheap and low risk imo. Example would be to look at Everett well improvements and the effect on decline and attempt to replicate these results on the other wells further along the decline curve.
Other options would be to buy into production from distressed companies and also the cheaper conventional wells which have a good payback. These imo are real options within the current cash margin over the next 6 to 9 mths.
I doubt the decline over next year will be as steep or simple as applying the standard curve to the current March level. Imo production has not peaked yet due to the shut in wells and lower overall availability in the last quarter and until it does the starting point to decline will be an educated guess.
All opinion only
GLTA
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