CKE: It's about Condensate, Condensate, Condensate vs LXEOne of CKE's advantages is not just the very low cost per Montney well (one of the lowest costs in the Montney space) that is just CAD$4.2 million per Montney well.
It's also the fact that CKE's Montney wells contain a significant amount of CONDENSATE that is priced higher than WTI because of its use from the oilsands producers.
CKE's latest 4 Montney wells had on average about 20% Condensate, see below:
https://www.chinookenergyinc.com/chinook-energy-inc-provides-birleyumbach-operational-update-3/
CKE's previous 9 Montney wells had also on average about 15% Condensate, see below:
https://web.tmxmoney.com/article.php?newsid=5521830432314288&qm_symbol=CKE
For reference, compare them with Leucrotta's Montney wells. LXE announced again poor results from its Montney wells with IPs under 1,000 boepd.
On top of this, LXE's Montney wells do NOT contain any Condensate but they contain only light oil and NGLs. See the excerpt below.
However,
LXE's (73% natural gas weighting) Enterprise Value exceeds C$320 million and LXE currently trades at C$75,000 per boepd and C$17 per boe of 2P reserves and about 17 times its annualized cash flow. LXE's key metrics
are 5 times higher than CKE's key metrics although both junior producers are debt free.
" Leucrotta recently tied in and started producing the 8-4 Lower Montney Oil well. The 8-4 well had an IP30 of 747 boepd comprised of 317 bopd of light oil, 2.2 mmcf/d of gas, and 60 boepd of ngls. This compares favourably to Leucrotta’s IP30 type curve of 584 boepd that is comprised of 213 bopd of light oil, 1.9 mmcf/d of gas, and 50 boepd of ngls. Note that this well was completed with 28 fracs versus the recently released A8-22 well noted below that had 41 fracs.
The A8-22 well has now produced beyond 90 days and had an IP90 of 838 boepd comprised of 254 bopd of light oil, 3.0 mmcf/d of gas, and 79 boepd of ngls as compared to Leucrotta’s IP90 type curve of 521 boepd that is comprised of 172 bopd of light oil, 1.8 mmcf/d of gas, and 47 boepd of ngls. The A8-22 has produced significantly above expectations and we will continue to monitor the well to see what effect the success of this well will have on the ultimate recoveries and go forward economics of the play. "