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Crocus, do you think the decreased activity in the BHL will negatively impact Stimsol sales/profit?
Exiting the first quarter the company has witnessed a reduction in the level of industry activity in northwestern Alberta, which it anticipates may create potential downward pressure on service costs for the remainder of 2012. In particular, a substantial amount of the company's capital is spent on its completion operations with acid and the associated pumping services having historically been secured at a premium. As the greater Judy Creek Beaverhill Lake development unfolds, however, the company has noticed an increase in both the availability of acid in the area as well as the number of service providers competing for this work.
