Kakwa #1 Play in the Montney
Kakwa is the #1 play in the entire montney, it consistently delivers the best wells in the Montney and has been doing so for years.
ARX management simply is not capable of communicating the value of the play, and rather than swandering capital, over paying for shares and destorying share holder capital they should of been investing to bring the potential of likely North America's #1 condesate play online.
Squandering 100 million on Sunrise, when you have a play like Kakwa, 1/2 cycle with all the infastructure in place, and the highest valued boe's in the companies, it just unbelievable and irresponsible.
Kakwa has a mountain of opportunity around it as well Wapiti, the deep south, with Kakwa you don't need to go on bended knee to the treaty8 nation and work within their restrictive guidelines, in fact Kakwa is build.
Rather than buy back you shares at the peak of the commodity cycle, maybe they pay share holders, or invest in projects like Kakwa that will get a ROI return of greater than 2 in the same year the capital is deployed. ARX has not better place to put its capital, its not growing production it is restoring production and oil prices went negative and they stopped investing.
With over 1 BCF of gas processing and Condensate handlying in place, Kakwa by itself is worth more than 10 billion dollars, ARX entire market cap.
ARX needs a new management team and need to think about ways to create value not destroy it.
The need to communicate that Kakwa is a unique play with 500,000 acres, gas plants, condensate rich, and in the sweet spot of the montney. Kakwa will likely not be replicated in our life time because of the sunk costs that are already in the play.
Management needs to wake up.
IMHO