Paramount Resources Ltd T.POU

How low can it go?

[MyHoneyPot]

That is the question at hand, wells now are 7.5 DCET compared with 13.3 million dollars originally.  The operation cost are declining with more declines to come in 2021 when they ramp up the volumes. 

Some wells that previously cost 13.3 million dollars to drill have projected netbacks of 70 million dollars, so if they could of drilled those same well for 7.5 million which they can now. 

Spend 7.5 million get 70 million back is that resonable enough economics. 

This does not take into account any and of the improvements in operating those wells, which could add millions more to the netbacks. 

I am not sure, How much lower the well costs can go, all i can say the best play and best economics in the entire Montney. 

POU is a 25 dollar stock. 

IMHO

[RetireAt45]

HoneyPot...i would be thrilled if we got to $5 right now...nevermind $25....I am stiing on way too much of this stock....70K shares....and if we had another big overall market downturn even remotely like we did in March....that would hurt.....and i don't think I have the cahones to sit on it all the way to $25....not that I wouldn't mind the opportunity... Let's hope your projections

[Raymondjames]

Pou has the best wells in the basin. Costs are down. Hedges in place. I think we get $50 wti in q4. Higher in 2021. We will get to $5 post Strathcona resolution or non-core asset disposition. I'm putting my money where my mouth is. Haven't sold a share yet. 

[jspaceman]

i have a question. why don't the best wells in the basin produce cash?

[Raymondjames]

This was always a 2021 free cash flow play. Will see $1 fcf at strip in 2021. More if commodity prices higher. At $60, would see $3-5 free cash flow. Takes time. 

[MyHoneyPot]

retireAt45 you will meet your objectives with this stock, and the price of oil will hit sixty dollars again. Look at California 3 weeks with smoke filled skies rolling electricity blackouts, while myself on a personnel basis can't use my boat lift anymore because in Kelowna i can't keep my batteries charged with the smoke filled skies. What kind of power grid is it when everytime you have

[energee]

Potential view on value using their September 14, 2020 Corporate Presentation numbers: 1P reserves of 335 MMboe valued at $5 boe in the ground = $1.675B less net debt of $0.81B = $.865B / 132MM shares = $6.55 share Forecast production of 65,000 boepd X $20K boepd = $1.3B less net debt of $0.81B =  $.49B / 132MM shares = $3.71 share Netbacks assumed of $16.00 boe (from their Sept

[Raymondjames]

Energee - now you know why I keep buying this darn stock. Anything below $3 is cheap.