RE: Drllling v Aquisition4 Feb 2021 09:49
If they make an acquisition then we get the all of the cash flow from day one.
If company brings wells back online and/or drills more wells then that will happen over a much longer period of time.
The lost cash flows of the second method will skew the economics quite a bit, if, for example, it takes 12 months to bring 5,000 bopd online from current acreage yet company can purchase production at maybe 2 or 3 times cash flows