Today, mining analyst Stephan Bogner from Rockstone Research published an update on Cardiff Energy Corp. (TO:CRS; WKN: A119FM). The Canadian based oil and gas explorer reported yesterday to have successfully cased and cemented the Clayton #1H well in Runnels County, Texas/USA. Casing a well is a big deal as it reflects the crucial milestone of the well being safe from now on. Once the cement has cured, lateral drilling will take place for 5 days, with initial flow rates to be announced 4-6 days thereafter.
With WTI crude oil currently trading at $46 USD/barrel, 1500 barrels would have a value of $69,000 USD/day ($2.1 million USD/month or $25 million USD/year). Even 300 barrels of oil generate handsome cashflows ($13,800 USD/day, $414,000 USD/month or $5 million USD/year). With production costs anticipated to be less than $15/barrel, Cardiff Energy appears well positioned for substantial growth in the near- and mid-term, especially since the company is announcing regularly as side notes in press releases to plan putting more horizontal wells into production in Texas, respectively once Clayton #1H flows stable and has become a pioneering success.