RE:Lots of Options, WTI > 90 U.S.In the US, its generally accepted that part of sustaining production is to add acreage - more specifically drilling locations - on an on-going basis - to replace the ones you've drilled. For example, Antero (US symbol AR) purchased $150M worth of land YTD with specific drilling locations (already delineated? Not sure how that works down there).
What's my point? in Q2 AR paid something like US$1M per location. My guess is AR is 5% oil/conde, 6% butane, 12% propane with the rest being natural gas and ethane (EUR pretty high probably).
Now look how many locations Kelt has esp at Wembley (presentation). And look at the play liquids #s esp oil % and higher value NGLs. This is real valuable. And its only going to get more valuablle IF the ratio of available good inventory to production starts diminishing.
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US is always ahead trend wise. We follow. And the trend is for bigger companies to acquire smaller players to consolidate one of the major benefits if not THE major benefit is more locations (inventory).
Perhaps these analysts are starting to realize how valuable a company like Kelt is because of its locations inventory and land.