1. New Chairman of the board....might be a signal of some kind of change in direction...time will tell
2. Maintain .27 dividend for Q2
3. Very impressive reductions in well drill time and drill costs...of 119 total wells drilling in Q1, 58 were in the Spearfish play...drill times down from 8 to 5 days...big drop in overall well costs....Sawn had drill times reduced from 28 days to 20 with large drop in drill costs....think I heard drill costs went from 6.8 mill to 4.2 mill per will... check webcast for specific amts.....Swan hills drill times went from 29 days to 14 days with well costs from 5.2 to 4.3......Viking cost remain flat but stated that their wells produce some 33% higher than competition.....Cardium drill costs improved I think they said some 35%....during Q&A Nunns said major improvement in the Cardium came from switching from oil based to water based fracing.
4. Restated plan to sell Duvernay holdings and other base assets.
5. Estimated no new drilling in Q2 due primarily to spring break up...estimates 4-5K boe/d impact....will spend Q2 doing competions and tie-ins for Q1 drilling.
6. G&A improvements included some 10% staff reductions.
7. Using rail for 5-7K boe/d\
8 Averaged $80+ per barrel of light oil on a $7 discount to WTI....hedged 80% production at floor of $92
9. Restated 2013 guidance of 135,000 - 145,000 production.....came in at 142,800 in Q1
10. Waterflood pilots in Cardium on schedule...plan to ramp up drilling in Cardium but with more focus in 2014.
11. Almost 1/2 capex spent in Q1....cash flow in Q1 ahead of budget
Regardless of all this good news, I am deeply concerned over the appointment of the new Chairman. Look at his track record, especially his recent tenure with SOQ/SNG. NOT IMPRESSIVE!! He is closely aligned to Clay Riddel who had a huge stake in SOQ. What are these two really up to? Wouldn't trust these two as far as I could chunk a Toyota. JMHO All