On Arq
Pipeline not an option until they are producing over 25000 of oil per day-not just fluids- until then trucking cheap- remember transport is not expensive- Arq produces at around $7-10 per barrel including transport.
On their cash position hard to impute a hidden Arq agenda other than they want the flexibility of the cash in the bank whilst they are producing profits to utilise debt. The Co has also said that the next round of drilling will be funded by its present cashflow not the sale of CH-personally I hope they find more than 5 0r 6 targets out of their 20 prospects and use some of their surplus cash. Dont be surprised if Arq in the next 12m has a buyback.
On Cliffhead there is also no magic in their selling out. Arq believe they have the best option onshore and did not want to be distracted by having to raise large amounts for Cliff head and be involved in timeconsuming joint venture discussions on the way forward for the Ch well. Arq want to get in an occasional huddle with Origin and keep looking for oil onshore. They are a small and effective office so what better than realising a profit now to focus on core business. Ch never core for Arq! They also wont be the first to sell out of Ch.
Of all the oil /gas companies discussed on this forum Arq is as open as any. I have never detected hidden agendas with that co. On the issue of trucking I shall check if there is a restriction in their production licence but doubt it- I do know that in a recent discussion Arq mentioned that the the refinery only received a fraction of their oil by road ( due to lack of production) and that they could ramp up to 25000bopd and truck it. Will check that though.
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