Monetization of Wembley
Large resouce plays require a lot of capital to Capitalize the Play bringing it into production.
That being said reserves are significant at Wembley with only 22% booked and approximately 200 M (Proved+Probable) not including Charlie lake that is icing on top of the cake.
However when thinking of a play that could potentially rival the likes of Kakwa, it will take years and significant infastrucure for the development.
Kakwa has 5 gas plants and approx 1070 MMcf of processing, last quarter producing north of 190,000 boe/day.
So Potentially could be a resource that competes with Kakwa but it need the capital and the plan for large scale development. Even with the capital there is alway a lot of success's, failures, and work that needs to be done to bring wembly to its potential.
Understanding this is foundational to understanding kelts business objectives, and their strategy to monetize the play. ArX has a market cap of approximately 15 billion and i think Kakwa is worth at least 60% of their evaluation, because it generates most of the cash. That puts the value at 9B for Kakwa with Teir1 infastructure. They would sell Kakwa for 9B it would need a 30% premium so 10-11 Billion dollars.
Wembley pipestone, is much more modest in terms of its development, it could potential have the same reserves as Kakwa, maybe more with the additional land, and including the stack Charlie Lake opportunity.
What the value of Wembley/Pipeston, this will soon be the 3-4 billion dollar question?
Kelt has a For Sale sign hanging on all their assets, it just need enough production to support a resonable price for a sale.
Who know what the price will be, but it is worth a lot more than Kelts entire current market cap.
IMHO