The sale of any mature asset should not be a surprise, every big company does it! When assets mature and drilling opportunities are exhausted they represent increasing cost for diminishing production. Big companies sell mature assets and get paid for remaining reserves. Buyer's of mature assets struggle to continue to produce them with increasing water production, scaling, and corrosion determining what percentage of reserves are not recoverable. You learn in our business that once your asset begins to approach mature status it is time to move on to a new and developing asset or risk being left behind! Thanks for the memories San Juan!
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Well i heard OXy was intrested or may be intrested to come in and do some horizontal drilliing on those excisting well pads opens some windows any truth to that
Yes, small independents drill wells to replace failed wells and wellbores which continues to add cost to recover booked reserves! These companies are are usually funded by equity groups and convince their investors they can continue to produce these mature assets at their historical 6% - 8% decline curves only to realize it is economically impossible. They usually end up without enough money to plug the wells and leave it to the state.
The good news is after a major oil/gas company sells an asset, SPRING begins, new growth flourishes, independents drill wells, they employ people and are guaranteed to spur on the local economy (and best of all, wait for it... THE BIG BURAUCRACY GOES AWAY!!! Day one). Look on the bright side, those close to the wellhead will be on the top of the food chain again and relatively safe and need not be worried. If you support those at the wellhead then you just might have to compete to work in the industry. So you all might sharpen up on that common sense thing that has been non-existent at COP because I predict it will be needed in the future if your caught up in an asset sale!