That's the only question you have to consider. They have a decent amt of cash, but it will be quickly burnt up if oil prices remain low. If they move out of Canada it looks like they will only have operations in Australia. Does anyone know if they provide services to the USA and if so how significant is it to their business model. Or do they provide services to actual drilling operation, or are they mostly providing services to shale extraction. With the oil prices being so low I don't think it is profitable to retrieve oil from shale so where does that leave them. I still think this has some downside but that's just my opinion and that don't count for much.
I agree production won't stop with the average price of extraction being about 7 bucks a barrel the oil producers will continue to do what they do best make more money. But the perception of cveo is tied to the price of oil and if they are revising their revenue downward at 54 a barrel (a few days ago) what do you think their revisions will b at 40 a barrel or 30 a barrel. I guess when you buy this, one is thinking the drop is over, I'm not so confident the drop is over for oil or cveo, but time will tell.