Kakwa is better than POU Karr....Karr is the exact same Montney play as Arc's Kakwa, it is simply to the north and a little bit more sour.
POU expect to generate 350 million a year in FCF, by drilling 12-16 wells per year for more than then next 20 years, without any consideration for the lower Montney. The DCET well costs are 7.1 million dollars, and their 2021 Netbacks are about 31 dollars a boe.
So that is what can be expected from a play like Kakwa, except ARC play are is better, their infastrucuture is better and they had more capital and better minds working on building it out.
So now it is in Harvest mode, Last quater Kakwa produced 186,000 boe a day which would equate based on POU numbers to about 1.625 billion dollars of FCF to ARX.
If Kakwa was producing 225,000 boe a day it would have FCF of about 1.97 billion a year in FCF.
I have no idea of the costs to build out Kakwa Infastrucutre, but my guess is north of 2 billion dollars, so with all the spare half cycle capacity at Kakwa really why throw any more at anything else until the production is peaked.
Really management is pissing in the wind, throwing 75 million at attachie, giving shareholder very little information on returns. Its another risk management folly except on the operations side now.
IMHO