Wapiti - Will continue to Pay DividendsKeep the resouce in that ground and get your netbacks from insurance, it sound to good to be true but that is what will happen at wapiti. It sounds like a liberal plan doesn't it free money for everyone.
Wapiti drill costs are abou 3 million, 4 million to complete, more 7 million dollar DCET wells that will return 35 million dollars each. 5X the capital invested.
So POU must of saw in their crystal ball the risk of more outages at the Wapiti gas plant and moved all their efforts and resources to Karr, brilliant move.
So the quicker Karr get to 40,000 boe, the sooner POU can implement a dividend. 40,000 boe from Karr and 38,000 from everything outside of Grand Prairre. That means when Wapiti comes on, this will be dripping in the dough.
POU plans are simple, 25 wells are Karr and 30 wells at wapiti, and they are producing 110,000 a day with 15-20 netbacks. So split the difference 2 million a day in netbacks, 265 days, 134 million shares.
730 in netbacks - $5.44 a share.
2 dollar dividend, 460 million to do drill, explore, and do what ever with. (for the next 25 years)
This is what i see in my crystal ball
IMHO