Paramount Resources Ltd T.POU

Fantastic Quarter and a 20% Raise to boot

[MyHoneyPot]

POU had another outperformance in the quarter, even with the underperformance of KARR + Wembley because of plant and production issues they delivered a brilliant quarter.

The sales of some Kaybob assets demonstrate how management have many ways to create value for the shareholders, 47 million for Kaybob + 2% gross override on future Montney production. They sold off the Montney production and are now using the facilities for Duvernay production. Sounds brilliant to me. Then they decided to monetize 6 million shares of NVA at $12.50. So, in the quarter they added 122 million in cash, with only 1,000 boe production impact. The 2% gross override on an asset that has been pretty will be inactive in terms of new capital for a few years, add cashflow to POU and allows someone else to develop the asset, perhaps a waterflood program.

The North Duvernay wells are fantastic, mostly oil, require a small amount of gas processing, and have a very quick payback. Six (6.0 net) well pad brought on in the first quarter averaging gross 30-day peak production per well of 1,271 Boe/d (1.8 MMcf/d of shale gas and 980 Bbl./d of NGLs) with an average CGR of 563 Bbl./MMcf. This area is ramping up quickly, and 10 more wells before the end of the year.

Willesden Green, their massive play are over 240,000 acres, could benefit from technology, especially the long reach wells I posted the other day. New bests are being established and now some wells are being drilled over 9000 meters. Willesden Green is a play that will shape the future of Paramount.

POU is not saying anything about Liard, but it is on their presentation, and Woodside Energy was so excited about their partnership they could not help themselves, but press released it. I would love to know the terms of that partnership, but POU is a 50% owner of a huge land position in one of the top 10 gas basins in the world, partnered with one of the worlds top 10 LNG suppliers.

A 20% raise for all shareholders, while pursuing POU most capital intense, aggressive development plan in the history of the company, show how management can manage, and attract a lot of capital.
JR still has a few rabbits in his hat, Clear Water which I know he is working on to get a spectacular return for shareholders, CPS which should be announcing something soon and has the Manitoba Government onside, West brick that is likely delayed because of gas prices, all the Cavalier heavy oil assets that continue to look more interesting daily.

With more than 500 million in assets on the balance sheet, zero bank debt, and production over 100,000 boe/day. POU can pretty wells do what ever it wants and with these assets in the hands of JR you know he will create a lot of value.
 
 
IMHO

[Moemoney42]

Agreed on all you comments.. by the way thanks for the readers digest version..!  I wouldn't be surprised to see a special divi at some point this year again.. ;-)