Nick Asterion's questions to Greenfire Resources Ltd (GFR) leadership • Q4 2024
Question
Private investor Nick Asterion asked about capital allocation priorities between stabilizing the core business and pursuing acquisitions, given Waterous's track record. He also inquired about potential permanent reservoir damage from the previous drilling plan and the specific reasons for its underperformance.
Answer
Executive Chairman Adam Waterous addressed acquisitions, stating that while they like the 'neighborhood' and the SAGD business, future M&A is 'indeterminate.' President Colin Germaniuk confirmed there was no permanent reservoir damage from prior drilling. Waterous added that the previous plan's underperformance was due to drilling into areas with already high recovery factors and higher-than-expected costs associated with drilling into high-pressure zones.