valued at less $6k per acre. that is less than you could buy the leases for, and you get the production and infrastructure for free. no short term hot money due. let it ride
if they have to depreciate the asset and it triggers some early loan payback the offering is there as away to raise capital. restatement of the reserves is what is critical. can they increase their PPP enough to offset the drop in price per barrel.
rioting and looting due to food shortages, but the soldiers look well fed. if they get no relief from OPEC that country is headed for a military coup and martial law
look at their presentation...$7.5M well has produced nearly 300k barrels of energy in 9 months. easy money, fundamentals will show up as the new completion techniques get reflected in the proven reserves
the well results are vey strong. 300k barrels in 9 months out of a $7.5M well typing out for a 850k+ EUR. You do the math. And they are tightening down the spacing. the cost of production on the new bakken wells is substantially less than the old ones. either the sands or the deepwater get cheaper to produce or shale is going to do just fine, especially those with large acreage positions. completion tech will just keep getting better and eor will get even higher % recoverable
TPLM market cap $264M,, Caliber valued at $1B by most based on cash flow and multipliers for midstream assets, TPLM owns 28% of Caliber.
TPLM interest in Caliber worth more than TPLM market cap...things that make you go hmmmm
suitors seem to be concerned about Caliber revenue if TPLM production decreased
and those assets have appreciated by 40 - 50% in value with the rise in EUR's. You don't get it, the completions and then recompletions and EOR is going to continue to drive down the price per barrel to produce. Securing the leases on some of the core geology was a brilliant move. When you are getting 70k bopd in 60 days it doesn't take too long to pay off the $7.5M it took to drill that well even at $50 oil.
payout is occurring much faster with enhanced completions. they priced the company with the increased production epr well incorporated and I bet everybody said show us so they are showing that the geology can produce million barrel wells with consistency. $7M well producing EUR of 1M barrels. even at $50 per barrel those are good numbers.
Larger Volume Completions Deliver 40-50% Production Increases. We have been testing larger volume completions across our acreage in the Williston Basin. These completions incorporated sand volumes of four to six million pounds with well costs ranging from $6.5 million to $7.5 million. As detailed in our press release dated July 17, 2015, enhanced completion wells have resulted in production increases relative to offset wells of 40% at our Polar field, 50% at our Walleye field, and 50% at our Pronghorn field. Results from enhanced completion wells in all three areas are outperforming our 700 MBOE type curve.
Enhanced Completion Dunn County Well Flows at 4,300 BOE/d. On July 22, 2015 the Skunk Creek 1-8-17-15H tested at a 24-hour initial production rate of 4,300 BOE/d from the Middle Bakken formation. This is the highest test rate recorded by Whiting and to date one of the best wells drilled in Dunn County. The well was a hybrid style completion with 32 stages and 6.2 million pounds of sand with an estimated well cost of $6.8 million
$7M well producing 1.2MB EUR's or $50M in revenue at $50 oil. the game is a changing