Bonterra Energy Corp T.BNE

Explorco

[kavern23]

If Bne spun Montney/CL assets off into a new company...would it unlock more value than 4.70 right now.
I mean the one hitch is probably need the magic of raising money and issuing equity.
But if you look at past thats how patch usually works and does.

Be interesting to see numbers modeled on that.

Try to frame it as a mini Kelt Explortation to investors.

Montney is the natural gas option and CL is more liquids if NG remains tanked.

Just hardly any new companies created anymore in alberta.

I think first CL pad needs to be fairly good to get capital in an equity raise and it might be why they are rushing to drill CL so fast.

[kavern23]

It also might explain why BNE is even producing Montney well right now instead of waiting until fall. Any potential explorco company would want to show 3000 boe a day before standing on its own and to attract money. I just dont see using FCF from cardium working to build out Northern assets.  But these guys are smart, lets see over 2024.

[kavern23]

Bne bought 3 more sections of land in May sale in Montney.   Doing that shows less likley to be selling Montney. An explorco with Montney and CL together is safer. I expect OBE to do same thing with Peace River. Investors dont want a mis mash of assets together.

[TheRexmember]

Kavern AECO prices derailed almost everyone this year, but something you pointed out on the YGR board a few times is that it is such a pain to do ERH wells in the Cadium core because there are so many old vertical wells.  The capital efficiency is close to 20k a flowing barrel in Cardium. It is under 15k in the Montney and about 10k in Charlie Lake - because it is not pincushioned with

[TheRexmember]

I think the Charlie Lake position is basically untouchable at this point as far as selling or spinning out the property. The three mile wells are about twice as capital efficient as a Cardium well for BNE and it adds a lot of drilling inventory.  The Montney looks outstanding too but the well costs are twice as high. It would be easy to flip to a bigger Montney player which their mgt