40,000 boe a day for 25 Years
Image owning a resouce that will produce 40,000 boe a day for the next 25 year, more than 50 percent liquids, and the majority of that condensate. Now image owning two of them.
That is what you have with Karr and Wapiti, then add to it super efficient gas plants, water handling, and 3 zone development where well costs are now below 8 million dollars, and economic for the project are good at any price that opec can muster.
The wells at Karr on the high end will produce 70 million dollars (8.5X return on cpital) from your 8 million dollar well cost and at the low end your looking at 20 (2.5X) million dollars.
The average capital returned expected for the 2018 wells was 44 million dollars that is about 5.5X the cost to drill a well in Karr.
So POU is a cash cow and this play by itself is worth about 2-3 billion dollars, POU is the cheapest stock on the TSE and there is no way ever a company with this type of resource can go under.
If Waterous pays 100 million to get POU out, that is 300 million going into Karr and Wapiti and a huge cash windfall for the POU.
IMHO