I do not like "NORMALISED DAILY BASIS" metric. All that means is they were unable economically to drill the total 7500ft lateral hole they had proposed. Had they continued they would have blown their well budget out of the water. They either stopped because it was cost prohibitive and /or had technical issues which prevented the lateral 7500ft well and the 22 necessary fracking stages . In other words it was not worth continuing the drilling based on cost per potential barrel production.
It's amazing how you can play with numbers and the story. The truth is only two of their 6 wells were successful from a technical and economic perspective. Their aim was to drill wells 7500ft vertical and 7500ft laterally for under $10 million each. With an oil price above $60/barrel and barrels produced equalling or bettering Encana's 2014 results. These metrics where not achieved.
Normalised daily basis reflects the barrels achieved per ft drilled. At times little lateral length was achieved with few barrels so barrels per ft drilled looks ok. With no reference to the capital cost and the assumption is naively made that if they continued drilling you can assume more oil. What about the economics!!!!
It is important to put some balance to the rhetoric that comes from brokerage companies.
ATS Price at posting:
2.9¢ Sentiment: None Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)