Now I haven't a clue as to how good these next two wells will be, And we have a bit of a variance in the wells that have been drilled since Simon Kukes took over in 2018 and bought the company and debt and in 2019 wells were being drilled clippitedy clip quick and all were good some were outstanding, but all were decent and, in this market, the prices are as such that it is all good and much, much better than when they were running at a good clip of 2-3 new wells each Q, the Covid hit.
So that outstanding growth came to a halt as did revenues in general, because PED having no debt, they just turned the wells off for the most part as they didn't have to sell. So, all was on hold until the money wasn't funny, and the company put that number at $50 a barrel at least.
So, they slowly start bringing them back online then finished two wells off and got them into production that were slated to start as Covid hit, now, they are in the cat bird seat as you shall see. First off 4 new wells in CO brought online (producing) in October a joint venture where they have 6% range of the 4 in a heavy LNG/NG/Oil environment, then they just did the acquisition at a good price for 10 wells already producing all in all being about the same 6% (in this market and the market to come) with 8 new ones to come Q3 2022 same deal low buy in will be nice steady long-term producers and in this and coming environment one gets their investment (laid out $$) back quicker than usual as the prices deem it so, so that one need not raise $$ and one has the $$ to continue to develop, win, win, than you Putin.
But then there comes New Mexico and that funny field that Simon now has humming like before Covid with another (besides the two that have been pumping their IP30 the last two weeks at the highest prices in years and years) and 6-8 more to come by end of 2022 as Covid is over and Simon says, let's dance, enough sitting around twiddling our thumbs basket full of cash and the game is afoot.
So, when PED had it's (before this year) best revs ever and the increases very strong as the wells just kept getting drilled before Covid and things were just humming like a fine-tuned machine these are the numbers from the first wells drilled in this market as one must add the also high NG and crazy LNG (those new ones give off such nice volumes of those) let's see what we may expect.
It's like playing stud, slow down let's have a look at reality and make a common sense/logical assessment/judgement. Now back to the two new wells they started their IP30 on 10-12 days ago, as we all know who know the oil game from the first day the numbers drop your first days are your best, except in certain rare circumstances. Oil wells do not go on forever, but, getting $90+ per barrel and near $% MCF for NG and $25+ for LNG, let's just say you are printing money and if your plans are as PED's are to do 8 total new wells this year as they did in 2019 with the first two now in their IP30 next two in permit/drilling stage and getting a return on ones investment with today's prices well, no need to say nor explain, you get it. It doesn't take a rocket science to do the match and thing rationally.
The wells since Simon Kukes took it over until Covid each well during that short period before production halted since they could do so during Covid as they didn't have and still do not have, debt, the first 30-day results in both oil and natural gas and with the FCF and no debt and a pile of cash, the next 6-8 wells this year, paid for kid and then some.
Will have best revenues ever this year, almost had already surpassed the year before covid when they were humming by the third quarter, and 2022 shiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiitttttttttttt as they say on The Wire, will be by the end of 2022 period doing in a Q what they did previously in a year($5-8M) and it goes how every analyst thinks it will or even 75% of, $$$$$$$$$$$$$$ period no matter what the peanut gallery says. One cannot ignore the numbers and just go back to when these wells I will list came online in a year 2019 and you will see especially with oil/ng/lng prices now and to come, that was child's play, game on.
Since Simon Kukes took over and then Covid put the brakes on he has with his $1 a year salary. The only reason I say this is that if it weren't for covid one could see that it would already be game set match, he/PED just got slowed down a second. Now just sit back and watch especially with the prices now and what is to come, so easy it should be illegal, main street real people stuff, not the hustle of small cap jungle.
Take note will not be adding the NG nor the LNG revs will just have them as a round up BO price to $100 where applicable.
Left column under well name is first month's production in oil second column in NG. They are going to be biggest wells to smallest is the point I wish to make, which is first 2 weeks the two new wells are and at these prices, but there is a variance, but an average is still at these prices and what is ahead is extremely good, it is good to be a small oil producer with no debt a sack of cash and wells literally as of late every two months, whether owned completely or partially, but one has to know, the drilling in NM now that it is back on track, Katie bar the door.
Column one the first production month of oil second column MCF NG
HALEY CHAVEROO SA UNIT #301H
February 9463 9852
HALEY CHAVEROO SA UNIT #303H
February 3800 3956
I am not the investmant guru but I mean, the last two wells that were put on hold since Covid start they did 13K BO + the NG LNG and people poo poo that they have already been pumping their first two weeks during highest prices in near a decae and sill just trounce on PED mental midgets may get me booted but I will not care, common sense wins every time, catch a dip even if for 500 shares and just let them sit for a minute. No chasing needed it's only warm up at the moment, get your spaces it's just as real and solid as Simon is period/full stop and no one can argue with their averages on their pair well drilling, needless to say at these energy prices they are making bank on the newbies..
Let me stop here February for these was February as they were not put on full until 2021 as they were drilled/spudded in 2020 Covid time
Now I know to follow my posts is a pain in the arse at times, but I tell the truth and I am rational and realistic. Now in 2020 was zero drilling and the first well that they did complete at the very end of 2020 was an injection well, so that they may go forward with their plan which had been put on hold since the Covid debacle late 2019 etc.
So, in a roundabout long way of telling you, these where the last two wells PED went full online with last February before they started drilling again in earnest like 2019 before Covid. Now, let's do some quick match, okay I will show all the other wells Kukes did, it just so happens being done alphabetically these two are first and they were the last two, and since they are into the first two weeks of their next two one would take not being that the energy prices are a tad bit better than the $35-40, they were w=for oil when these two came in Feb 2021 after sitting through Covid.
You will get it the end but just add the first two numbers 9463 BO + 3800 BO (not BOE) = 13,263 the first month at today prices adding in the LNG and the 14-15K MCF NG let's call it $100 per BO what is that? 1.3263,000 the first month just added to the revenue and they aren't even the best, oh the story we shall tell with the facts, those two new wells already pumping their hearts out with oil $95 avg and NG where it, it is and LNG where it is, you get the picture.............math, common sense. Math never lies because it really doesn't give a toss.
Let's move on, first month BO on the left MCF on the right LNG not included do the match they already been pumping two weeks at top prices for 5+ years, duh, and that is my last hint, catch a dip, put them in a show box, cookie jar sock drawer, math never lies
HALEY CHAVEROO SA UNIT #305H
April 2019 12852 5317
HALEY CHAVEROO SA UNIT #345H
September 2019 1618 1326
not one of their better performers, but it has actually fluctuated above and hold the original production #'s which is good in a way as the IP #'s those are your #'s from there they drip, some quicker than others and Haley 345 never was a contender but has held that 1800 avg spot which is still okay especially in this market, it isn't a bad miss IMHO. It had problems from the jump, die was it from the long time off from drilling until completion, I doubt it, was just one that wasn't up to what the others were in the field, but it is keeping it's production flow up even growing it to at times 1900+ BO not as exciting of 9-12K first monthers but but still good especially in the current environment
From 1600 and topping out 1950 per month BO definitely a bad one for them but the other one was good; this was one of two and luckily the other did 12852 BO the first month. Just pointing out now two pairs will show the others but, yes you people are just not getting it especially in this environment, but you will.
I think we can all say Q1 was going to be nice with the energy prices as they are, but with two new wells even 1/2 as good as these pairs and ones to follow, shiiiiiittttt
Okay will throw them up tomorrow, is getting late will go onto the Jennifer Chaveroo fields next 4 wells there I think, then the new field they added where the KM wells are that is where the two new ones are going to the far north end of the field State 301-302 something like that have the google map for it if anyone wants it but I don't know how to give on Ihub nor do I wish to learn but can give on Stock Twits as a Jpeg., but yes grab a piece throw in the show box oil stays good money keeps cranking go back and look at growth and PRs from then and realize what is ahead, just saying, catch a dip then sit back analyze watch, DD it then if one wishes would catch another little dip. All similar you will see the worst pair of wells added I don't know off the top of my head 7K BO a month, same in NG and then LNG so yes in this environment can round out to just the oil @100 per barrel it is a big bump, and they add just the minimum new wells they expect (8 n CO 5.75% ownership for small money $2M?)
And 6 new wells after these two mid-March if prices stay set game set match, checkmate. Not rocket science.
Peace out.
AI
