Chinook Energy Inc. Common CNKEF

RE:Beakr123, PONY, Saguaro, Black Swan, CKE: 30 wasted seconds

[Beakr123]

You reference cost per well which is great but you don't mention the fact that Chinook's frac intensity is lower than most with fewer stages completed per well. Of course its cheaper, it isn't as much work. Debt free, they sure aren't making any money either. With land supposed to be as good as you say it is why cant they produce? 50 miles of pipeline is great, however that old corroded garbage is a liability not an asset. TCPL's new pipeline will be full long before Chinook has any ability to put meaningful capacity into it. COP in Aitken Creek is also a much different story that Birley Creek. Aitken Creek has awesome production (Black Swan) which includes (As casper once again eluded to) high pressures than CKE's low pressure low quality asset. Birley Creek is not as valuable and will not fetch those kinds of prices you are referencing. Logistically Aitken Creek is also MUCH more favorable then the remote Birley Creek. COP might not have reserves or production yet but that land is right in the sweet spot. If you think PONY is debt saddled maybe you need to take a look at the industry. They do have debt but its completely manageable and well within reason. This is a smart company who knows what they are doing. They even struck some pretty impressive wells in Townsend. Of course you are more than welcome to your opinion but CKE is not a quality name I don't care how you spin in. All you can hope for is a buy out that isn't rock bottom and I don't think the odds are in your favor.