Avoid the real issue Gunner With POU they are not buying back shares, unless it is oportunistic, just like TOU. You can take it out of context if you want but i have a direct line to JR, and talk to him on a regular basis.
I have followed the Kakwa assets befor VII generations even owned them, and before ARX got their grimmy hands on them.
Wells at Kakwa can payout pretty fast, 35% condensate 24% NGL liquids 42% gas
100wti 45 NGL $4 gas U.S = Kakwa = 85/boe CF Canadian
2000 boe/day, - Kakwa well, 30 dollars (Op costs + royalities) (Likely High, Best Guess)
Netback $55 dollars
6,000,000 / 55 = 70600 boe = 54 days to Cashflow 6 million dollars
Payout in less than 60 days a 6 million dollar well, 90 days pretty well for sure.
- Tell me they are getting better returns buying back their shares?
- Attachie 75 million dollar investments
- Sunrise dry gas 125 million dollar investment
Rampup at kakwa is the inteligent decision here where in 2021 70% of POU wells had more than 6X return and 20% had more than 8X return, and in 2022 the commodity prices are a lot better could get 10X return on investment and have wells that pay out in less than 3 months. .
WCP just confirmed Kakwa results with their latest wells, but ARX is going to take a few years to figure this out?
Yikes
IMHO