PEY: “1,000 Times Over”
Darren Gee, President and CEO of Peyto Exploration (PEY.to), reflects back on drilling 1,000 wells in Alberta’s Deep Basin:
“That’s what makes the accomplishment of drilling 1,000 wells doubly impressive to me. The fact that in almost every one of those cases, the dollars invested will ultimatley yield more dollars in return. Which is the truest measure of success of 1,000 wells. Not just the iron in the ground or the production created or the reserves developed, or even the royalties paid to the people of Alberta, but the profit generated — the predictable and repeatable returns that were produced.”
“Ultimately, though, the amount of activity is still just a means to an end. Because it’s not a race to see who can drill the most wells. It’s about who can make the most profit. About who can get the most dollars out, for the dollars they put in. This is the oil and gas business, and business is about making money.”
“So when we come to a milestone like 1,000 wells, I think it’s important to consider what we’ve learned:
- We’ve learned it’s not about what you said you could do, it’s about what you did (and we did a lot).
- We’ve learned that it’s not about just getting things done but generating a return and earning a profit (and we have positive earnings for the last 38 consecutive quarters…).
- We’ve learned that doing it carefully and correctly, one well at a time, eventually adds up (and will continue adding up).
- We’ve learned that you only run out of opportunities if you stop exploring for them (we haven’t and we won’t — heck, it’s right there in our name Peyto “Exploration”).”
“…I wont apologize for being boring. As I’ve said before, when it comes to making money, predictable, repeatable, profitable, and boring are exactly the adjectives I’m looking for.”