Maybe another reason for the layoffs is the the North Burbank CO2 project really hasn't worked at all. Lots of money spent on that.
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They are not making money on their hedging program...who is in charge of that?
So where is Chaparral making money? If anywhere?
The marmaton was a disaster. The only good asset they have is the Miss and they have drilled up most of the good acreage.
Let's see, lots of money spent on a failed project...sounds a lot like the Marmaton. Spend $60MM and lose $20MM in 2013. What do we do in 2014? Double down, spend $105MM and lose another $45MM!! Of course!
Let's be cautious about placing the blame on North Burbank.
Sadly this company has become a disgrace to the industry in all of it's recent failure with the insane idea of the CO2 project in the North Burbank Unit! Sure, this type of flood can be successful in some formations but NOT this one. How could anybody be so arrogant to believe otherwise? And why didn't anybody try to stop them? The big officials need to be forced to live in the area with all of the mess they've made here and the dangers they have caused.
Yes, there WILL be a layoff. The only question is: Who will be the first to go? Will it be the high rolling officials sitting behind the desk making all of the horrendous decisions? Or will it be the Spartans in the field that are forced to throw integrity out the window each day?
Agree 100%
I don't know, but it should be.
Has it been canceled