Quote:
Originally Posted by Lubicon
Activity has definately picked up but prices have not followed suit to the same extent. At least in Canada.
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Same story in the Middle East... service companies are still basically breaking even except in some special projects and technology applications. And even those make only enough to offset the losses in basic services.
But these things take time and modest announcements like this one are the pebbles that can start an avalanche. I know 46 wells doesn't sound like much, but if you do the math, their planned yearly expenditures seem to be more than 46 wells x $11 million per well. Either they're open to drilling more if things go well or they're considering an increase in the cost of services as the years tick by.