Talked with George Ziroff, CFO, Rival Energy this morning. He said I was probably too high on my eps for q3 of .069. Said they normally use cashflow since the juniors reinvest so much and the depletion changes with every well they might hit.
Asked about pricing, he said their price pretty much tracks WTI in C$. No heavy oil or sulphur problems.
Said getting from 789avg production in q2 to 1000 noted in qtrly report was 2 Killam wells that took it to 1000boepd in July. Then 2 Robsart ngas wells were connected in August for about 100boepd.
Currently they are drilling two more Killam wells. They have one oil well in Bellshill to drill and a gas well near Leach?
Then late q4 or early q1 they will drill 2 more Robsart gas wells.
Said recent hires of a VP Exploration and Land Manager have helped. They brought connections that will get Rival some smaller farm in deals that they would not have known about. He said costs are going up as day rates for rigs rise and all services are more expensive as well as land deals.
I commented that their guidance for C$.34 cashflow for 2005 looked low given current prices and he agreed. Bobwins
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If the Commodities Boom is Over, I am just a Gold Bug headed for the Windshield of LIFE
