Hi CO,
Good analysis. Please check these key remarks:
- CKE's IP-90 rates and/or IP-60 rates are
HIGHER than the IP-30 rates in most cases, based on the results from the existing 9 Montney wells, as shown in the press release with the Q2 2017 results. Therefore, this could be the case for the new 4 Montney wells too.
Based also on our proprietary database,
this increase is not an everyday thing because the IP-90 and IP-60 rates for many other Montney producers are usually
LOWER than the IP-30 rates.
- Based on my proprietary database, CKE's total cost per Montney well (C$4.24 million) is
at the low end of the range with the costs of the Montney wells, while these excellent IP results from the new Montney wells are at the high end of the range with all the Montney results from all the Montney producers.
Nevertheless, CKE's
current valuation on ALL key metrics ($ per boepd, $ per boe, EV/CF, $ per Montney acre) is at the LOWEST end of the range with all the valuations from all the Montney peers, as noted in my article below:
https://seekingalpha.com/article/4051519-chinook-energy-free-last-montney-growth-engine-begins-bargain-valuation
As a result,
CKE at the current price levels has the biggest upside potential relative to the other Montney peers. Thank you.