Whats so special about Kaybob North ?Kaybob North, 79% OIL/NGLS
Kaybob North is quietly and quickly ramping up, demonstrating to all who owns the sweet spot in Kaybob Duvernay.
POU has for many years been working in the Duvernay and after Shells sale to CPG, POU collected up all it scraps of Duvernay and sold them to CPG for 375 million dollars, in December 2022, I remember that $1 special dividend quite well.
Kaybob North is a sweet spot in the Kaybob Duvernay, to the south gassier, to the west gassier, this is the oil rich best acerage of the play.
Now we are seeing the results, wells coming on producing almost 1300 boe/day and close to 80% Liquids IP30. POU has now began its exploitation of the best of the Duvernay and in the process of developing their plan, sold off the table scraps to CPG.
Investors may of noticed that Paramount also sold off so much of the Kaybob Montney Lands. But decided they would keep the wholly owned infrastructure to produce Duvernay.
Kaybob North is short term exploitation and delivering the mother load for Oil in the Kaybob region, for 2024
- Six wells in the first quarter
- Five wells in the second quarter
- Eleven more wells before year end.
Sounds like POU is confident in Kaybob North, and it will another home run for Paramount Resources. Plus they added a pile of cash to the prestine balance sheet.
IMHO