Post by
MyHoneyPot on Dec 05, 2023 10:30am
Methane Targets
People in Canada do not realize how far behind the USA is in terms of Methane emissions. If you go to the eaglesford at night an look over the horizion you will see thousands of wells flaring because they do not have the facilities to process the gas.
Kelt if it could flare without restriction, would not have to wait for gas processing, and it would be cheaper and quicker to bring production on.
The methane regulations in the states may not be good for the gas market, because likely BCF's of gas that were being flared will now be captured and processed.
So consider this Canada has already met 45% of its methane target, and is almost 2/3 of the way there towards the 75% target, while the united states is likely at 10% of the way of reducing methane emissions, and have a long and more costly way to go that will slow down production growth in the USA.
Kelt is really in a good position here, they are bring on production at Wembley, at OAK they are only going to drill DUCS until the gas market improves, and charlie lake northern alberta is lower cost and prolific.
Being debt free they don't have to listen to banks, put on bad hedges, or do things the impact the long term value of the company.
This is a buying opportuning if only for a 1 year hold until the other 50 MMcf come on at wembley that will add approx 20,000 - 25,000 boe in Q4 2024. (60% liquids)
IMHO