Chinook Energy Inc. Common CNKEF

RE:RE:RE:RE:RE:CKE restricts flow rates - compressor is filled to capacity

[George98]

PeterM1 wrote:

Given the hysterical and frequent postings from the usual gang, one senses that the bear market in CKE might be under threat. Certainly no one would place much credence in the crude contributions of cochrane, ferret and the rest. However it is a pity to read the stuff that auburn is posting because one senses he knows better. Firstly I feel sure he knows that the $9.00 net back figure he throws around is derived from the old consolidated numbers of Chinook and Craft. The projected numbers for New Chinook are about $15.00 - a respectable number that can only improve with increases in production. But even Raymond James fell for this one. However his dramatic assertion that “they will burned their existing cash hoard by the end of the year on capex” is really a bit much. It should read something like this.

 

By the end of 2017 CKE will have more than doubled their production to 6300 boe, drilled new wells, be debt free AND have a $2,000,000 cash reserve in the bank”

 

Stockhouse is a valuable resource. It is a pity when people take advantage of it by posting these sort of misleading statements. 

 

CKE is a penny stock  with a small float -  two bit traders take advantage of the fact.  It is not difficult to drop the the price 5 % at the end of the day with 100 share sale. But the volumes are picking up and it is only a matter of the time before a major trader takes a serious position and will defend it from these penny players. Volume over a million today and CKE is holding its own. Just a matter of time.
 

excellent said, Peter.

As noted from another poster, the three recently-completed Montney wells exceeded the company's expectations. Thanks to their high flow rates that range from 1,100 boepd to 1,400 boepd, the compressor was filled to capacity(!), so the company had to restrict their flow rates, see slide 9. 

 

This is why the company announced that these three wells were producing at restricted gross rates in late March. The company has run out of capacity according to the presentation (slide 9):

 

"With 9 (7.63 net) wells on production in mid-March at partially restricted rates, the 25mmcf/d compressor built in 2016 is filled to capacity".

This is why the company stated a few days ago that their $40 million capital program for 2017 includes the expansion of their facility at Birley/Umbach from 25 mmcf/d to 50 mmcf/d.