Kelt Exploration Ltd T.KEL

Altagas Pipestone Deal

[longrun86]

Hi folks,

In my last post I mentioned that Tidewater may sell its Pipestone ownership and today that announcement was released which I believe also includes Phase II expansion.

This is good news for Kelt as it provides a more stable partner in the area for future development. 

LR

[MyHoneyPot]

Great news, Pipestone is one of the top plays in the Montney with wells that pay back in less than a year, expeciall now when you can pretty well hedge oil out a year at almost $80 dollars USA Pipestone a top performer with wells with quick payback and good reserves (link( You have a company that will be increasing production 33%, not to mention the opportunity to sell off some lands, and the

[PabloLafortune]

Good news for Kelt - if they maintain their share of the plant expansion (which doubles capacity),  would that take Wembley capacity to 35-40,000 boepd? Anybody know how long it takes to build those things?  Btw, interesting what they said about phase II - seems like if the deal isn't consummated, they'll still jointly go ahead with it together? I'm confused. One man's _

[PabloLafortune]

Kelt doesn't really have much in the way of hedges, the basis deals in place are there to protect the AECO-HH differential. @$85 WTI though, it starts making sense to hedge some oil (eg 1,000 bpd for 2024). Oil is easier to hedge and protects the same revenue as six times the natgas production in boe (36x in MMCF) atm.   Asset wise, could make sense to sell Pouce Coupe gas for a fair