BMO’s researchWww.dailyoilbulletin.com According to BMO’s research, the type well forecast for the Karr/Kakwa areas has an initial production rate of 5.4 mmcf a day with a condensate-to-gas ratio of 150 bbls per mmcf. The estimated recovery is about 5.5 bcf per well with a depth of about 3,000 metres. It can be as much as 50 per cent over-pressured.“So this really is truly an outlier,” said Smith Low. “I think the closer you get to the normally pressured gradient, and the farther east you move, the more likelihood that you get into the oil window. But for the condensate window there is a very well-defined sweet spot in this area.”Because of the depth BMO assumed a well cost of $11 million.Using its original price deck of $4 AECO gas and $90 WTI, BMO gave the Karr/Kakwa areas a rate of return of 350 per cent.Assuming a realized condensate price of $50 today, the IRR drops to 66 per cent. “So it’s still very resilient,” Smith Low noted.