Quote:
Originally Posted by Lubicon
http://www.cbc.ca/news/canada/calgar...2016-1.3706074
The good news out of this may be that this could free up future cash for some producers when they do want to drill again. Currently it is being spent in getting out of contracts. This will also help reduce costs long term as they may be able to negotiate better rig rates when they do decide to drill again. Or maybe not.
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It won't change future rig costs and it doesn't really free up cash as if they were paying not to drill it means the economics would be pretty bad on the wells that were originally planned to be drilled