Evening all good to see some of the crew popping in..... agree the article is not very positive however the article states that "all of these guys are trying to get their money out the ground and trying to produce as much as possible" which is clearly not the case, our wells are pretty much drilled (all spud) as far as we know but incomplete and unfracked, once a well is fracked production starts.
Continental have not fracked a well since 29th of May (Bertha Ellen) this could be because they have read the market better and are prepared to keep the oil and gas in the ground and wait for a better POO before completing wells or for some other reason that we don't yet know, the drilling can take place and fracking can be delayed to suit market prices.
The BOD of MAGP have already demonstrated that cost cutting and oil production in a lower price environment is the way to go and Continental have also been striving to get to lower costs for development and are listed in the following report as one of the winners to this end, we are in good company these wells will come in when the time is right, meanwhile we are cash generative according to SOS.
Oil industry drives down global cost curve; US tight oil is the biggest winner
The Wood Mackenzie Report estimates that oil companies could make money in west Texas' Bone Spring and Wolfcamp tight oil plays with $37/bbl oil, the Eagle Ford Shale in south Texas could turn a profit at $48/bbl, the average breakeven price in North Dakota’s Bakken Shale is $58/bbl, while breakeven at Oklahoma’s SCOOP region is $35/bbl.
The report says the big winners will be incumbent operators in the key shale oil patches in the lower 48 U.S. states, such as in the Mid-Continent and Permian Basin, including U.S. independents such as EOG Resources (EOG -1.7%), Pioneer Natural Resources (PXD -2.1%), Continental Resources (CLR -2.1%) and Apache (APA -1.9%), as well as oil giants Exxon Mobil (XOM -0.5%) and Chevron (CVX -0.2%).
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