Lower Montney Based on the Russian speculation the board fighting about, I started looking. At Seven Gens Feb presentation. One slide that caught my attention was their lower Montney slide.
LOWER MONTNEY
Emerging resource expansion across all Nest regions
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Successful Q3/18 to Q3/20 delineation efforts
• Validated productivity and reservoir characteristics
• 14 successful Hz wells with varying completions intensity and design
Assumes 3 lower Montney locations are developed in tandem with the company’s standard 6-well upper/middle Montney development profile
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• Triple-stack development model pilot
Stacked development layer expands resource
& improves surface infrastructure utilization • Up to 50% more inventory per section(2)
Upper Montney Middle Montney Lower Montney
• 30% increased NPV per section(2)
• Similar full-cycle capital efficiency
Pipestone doesn't seem to interested in the lower Montney, yet. A lot of value to still unlock there. Pipestone management seem to be doing a great job laying out conservative long range plans. They may not continuously spike the football and pat themselves in the back but I do believe they have a plan for when the time for the lower Montney, but for now let others delineate it.
I did find it interesting seeing a company start Projecting some increased value for the lower Montney.
Any thoughts?