Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: How many locations do you think you have de-risked with the development done so far at Beta, and how do you plan to balance de-risked locations versus new areas? A: Daniel Furbee, Senior Vice President and Chief Operating Officer, mentioned that the C 59 well proved up a significant portion of the southern part of the acreage, which was previously undrilled. They expect to add multiple locations and are excited about the potential. Martin Whillsher, President and CEO, added that they plan to add development programs from 2025 to 2029 and are confident in the return profile of these wells.
Q: Can you explain the cost differences between the first and second wells, and are you comfortable with the $5 to $6 million range? A: Daniel Furbee explained that the C 59 well had about eight extra days of drilling due to controlled drilling and tool failure, which increased costs. They still feel comfortable with the $5 to $6 million range, noting that if there are no issues, costs similar to the A 50 well are achievable.
Q: What is the expected decline rate for the wells at Beta, and what is the exit rate from IP at the end of the year? A: Daniel Furbee noted that the A 50 well did not see a sharp decline and is producing about 500 barrels a day. The decline profile is expected to be fairly flat due to the reservoir's characteristics, and they have high expectations for shallow declines moving forward.
Q: Can you provide more details on the monetization opportunities in the Haynesville, and what kind of value are you expecting? A: An unidentified company representative mentioned that they are exploring different opportunities, including creating new AMIs or acreage sales. They expect to realize these opportunities soon, potentially bringing several million dollars in value, depending on the structure of the deals.
Q: When do you envision a return of capital, and what are the triggers for it? A: An unidentified company representative stated that with the increase in credit facility commitments, the threshold for returning capital has increased to around $100 million. They hope to consider this in 2025, depending on development activity and timing assumptions on capital spending.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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