Grayza, ATS management are very experienced at managing and contracting the drilling of wells. They were drilling approximately 50 wells per year by the end of their ten year Aurora Oil and Gas ownership. They drilled over 200 wells in total around the Eagle Ford area from 2004-2014. The problem IMO is not that they lack experience it's the fact that the ground geology, depth and lateral drill length is considerably more technical therefore expensive than the Eagle Ford resource. Often they fail because of the shear depth and length of the drill incurs faults and challenges beyond economic value. I think they also were somewhat naive in thinking they could oversee the drills from Australia by putting a lot of trust in the hand picked drillers they chose to carry out the initial drilling program. Eagle Ford got so easy they underestimated the difficulty in the ATS land drilling process. They lived in the UK and the USA during the Aurora years.
ATS Price at posting:
2.5¢ 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)