I am not too sure that this is not TAO specific. You talk of facilities capacity, well from what we were told before it was being built to take 5000boepd in gas alone! Remember too how they initially planned this current qtr to be raised to 4000boepd before changing their minds and keeping last qtr and this at 'around 2000' boepd, throwing in some argument about reducing flaring (which they were on the hot seat about because of not building the bunker and neighbours being lit up like North Dakota!!!)
The CC gave the eerie prospect that the 5000boepd is NOT going to be there from day 1 of the facilities' commissioning and that subsequent drilling was going to account for keeping it at 5000 'eventually' which is way different from 5000boepd being right there and made up of current flowing and current behind pipe (and this despite their last report that said a lot were restricted and should produce more than they are doing when facilities are up.
So, given the changes make mgmts' words suspect, we are at risk of the facilities not being completed on time, of initial production through the facilities being somewhat less than the 5000boepd , and when and if 5000boepd reached they need more drilling successes to make up for decline rates.
I have a long and losing position in TAO but have been trading in past many weeks to make up for losses but while I bought just above $4 again I have less confidence this time that it will be quickly made up.