PSI,
I think with the various risk elements on this project the corporate / financing risk, and its impact on the overall return to the investor, is probably lower down the importance list than the well execution risk (at this point anyway). I agree that it is all part of the valuation (NPV) mix though. I guess i am talking about the main focus at present for the investor market, and for their to be investors/speculators attracted to buying STX they need to tick off the well completion side of things first. Then we can argue over whether it is going to be 50c or $1 because of gas flow rates, well economics and then financing execution.
My understanding of K4 was that it was fracced in completely the wrong direction. There was also talk of the well deviation also causing issues and that may have assisted in the directional stuff-up. I cant recall the exact specifics now but I spoke to CT at the time and he said they knew exactly what happened and that it was an execution issue not a geological one.
There was also discussion around the propant mix being to sand heavy, but i cant be 100% sure on that part of it.
IMO
PSI, I think with the various risk elements on this project the...
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