Painted Pony Pete Ltd PDPYF

RE:RE:RE:AECO Up 191% Since 12/11/2017

[InvestLargeC]

No new pipelines in the near future? I read different info:

"I have talked with three industry participants thus far who told me that Westcoast Energy's High Pine expansion will most likely be completed by year end. And also, they project that the completion of this project will significantly narrow the current gap between AECO and Station 2 prices effective Q1 2018. This project is illustrated below:

Furthermore, according to this article here that was published last week, TransCanada (TRP) is making proposals to Montney producers to transport their gas from North East B.C. all the way to the U.S. Gulf of Mexico targeting the LNG terminals and the LNG export market.

TRP has been looking for new growth opportunities and according to Karl Johansson, executive vice-president for Canada and Mexico natural gas:

"In a year, TransCanada will be able to transport Canadian gas all the way to Mexico. Tariffs would be competitive with options already in use by Western Canadian natural gas producers reaching the Gulf Coast LNG market".

Karl Johansson also said during the company’s investor day in late November 2017 that:

“We are hopeful that (Western Canadian producers can find their) own market out the West Coast, but if (they) can’t, we can actually still access LNG for our producers. For that matter, we can actually move a unit of northeast B.C. gas into Mexico City once we get Sur de Texas fully built out which should be about a year from now.”

On that front, we read between the lines and believe that TransCanada will implement the successful policy already used with its Long Term Fixed Price (LTFP) service on the Mainline that took effect Nov. 1, 2017 and cleared a lot of the surplus gas “which has been nagging us on the Mainline for years,” according to Karl Johannson. Thanks to this key development on the Mainline, TRP takes 4 Bcf/d out of Alberta's natural gas market and transports these volumes to the Dawn hub in Ontario.

After all, the main beneficiaries are those natural gas producers in British Columbia who have natural gas production with no firm contractual commitments in Q4 2018 when TRP's LNG export plan materializes. In other words, the potential shippers and main beneficiaries are these companies which have already staked out significant positions in British Columbia investing in the prolific Montney play such as Chinook Energy (CKE.T), Crew Energy (CR.T), Painted Pony (PONY.T), Kelt Exploration (KEL.T), Storm Resources (SRX.T), Arc Resources (ARX.T) along with privately-held Progress Energy (now Petronas' subsidiary), Canbriam Energy, Black Swan Energy and Saguaro Resources."

And,

"...in Q3 2017, TransCanada was working to maintain and expand the NGTL system capacity in Alberta and British Columbia. Specifically, the 2017 NGTL Expansion Project consists of five separate pipeline loops and two compression stations and the current status of each section is below:

• Northwest Mainline Loop No. 2: Bear Canyon, Operational

• Liege Lateral Loop No. 2: Pelican Lake, Operational

• Kettle River Lateral Loop: Christina River, Operational

• Northwest Mainline Loop: Boundary Lake, spread 1, Operational

• Grande Prairie Mainline Loop No. 2: McLeod River, ISD Q3 2017

• Otter Lake Compressor Station Unit Addition, Q4 2017

• Alces River Compressor Station, Q4 2017

• Northwest Mainline Loop: Boundary Lake, spread 2, ISD Q2 2018

This project is part of the ongoing C$5.1 billion near-term capital program for the NGTL System further enhancing TransCanada's ability to meet the needs of its customers for safe, reliable and competitive gas transmission infrastructure, led to service reductions pushing AECO prices at extremely low prices (under C$1/GJ) during the third quarter and in October 2017."