KYS connection to YGR. Same team, similar assets, future JV? Some additional information regarding Kaymus Resources that's pretty significant:
Not sure if many people know this, but all the directors/management on KYS-H are the same team working for YGR. Does that mean Kaymus is a side project, or acquisition, or JV partner down the road? Both companies are targeting the Cardium and Viking formations.
When you look at Kaymus, they got a fresh balance sheet and some cash, but doesn't really show off their assets. So why would the Yangarra team even bother. Well despite not mentioning anything on their balance sheet, they in fact have quite decent reserves in comparison to the market cap that they show. Mostly gas based, also some oil, over 500,000 barrels equivalent or just under $15 million USD in value.
From the 51-101 that came out last week:
The Company holds a 100 percent working interest in two proposed oil locations producing out of the Cardium and Viking formations. The Sylvan Lake, Alberta property is located near the town of Sylvan Lake, Alberta in Townships 36 and 39, Ranges 1 and 3 W5M. The Company acquired interest in six sections in the Workman/Twining area, located in township 30, Ranges 26 and 27 W4M. Kaymus holds a GORR interest in six wells and a 100% working interest in one proposed horizontal gas location producing out of the Viking formation. Kaymus currently has no wells drilled in the Sylvan Lake Area.
Kaymus has two gross proposed wells for which it expects to incur abandonment and restoration costs. These costs included well abandonment and surface lease reclamation. The estimated total abandonment and reclamation costs, forecast net of estimated salvage value, under the proved reserves category is $204,900 (undiscounted). The total proved plus probable abandonment and reclamation costs are $357,600 (undiscounted). 100% of such amounts were deducted as abandonment costs in estimating future net revenue of the Company in respect of proved and proved plus probable reserves as disclosed above. Estimated abandonment costs are included in the 2020 Reserves Report as a deduction in arriving at future net revenue.