Peyto Exploration & Development Corp T.PEY

Alternate Symbol(s): PEYUF

Energy Oil & Gas E&P

Peyto Exploration & Development Corp. is a Canadian energy company involved in the development and production of natural gas, oil and natural gas liquids in Alberta's deep basin. The Alberta Deep Basin is a geologic setting situated on the northeastern front of the Rocky Mountain belt in the deepest part of the Alberta sedimentary basin. It acquired Repsol Canada Energy Partnership (Repsol Assets), which included around 23,000 barrels of oil equivalent per day of low-decline production and 455,000 net acres of mineral land. The acquisition includes five operated natural gas plants with combined net natural gas processing capacity of around 400 million cubic feet per day, 2,200 kilometers (km) of operated pipelines, and a 12 MW cogeneration power plant. These assets include Edson Gas Plant and the Central Foothills Gas Gathering System. The Company has a total proved plus probable reserves of approximately 7.8 trillion cubic feet equivalent (1.3 billion barrels of oil equivalent).

TSX:PEY - Post by User

Peyto Exploration & Development Corp

Bullboard Posts

Post by houbahopon Apr 21, 2011 4:15pm

468 Views

Post# 18472032

NatGas futures

With Encana is finally realizing the market is flooded with NatGas. They are postponing their plan to double their production in the next 5 years. They served a miserable
.11 in e/s for Q1. Fortunately they had sold a load of futures at a higher price to boost their average selling price.

The thing is, future prices are lower than $5.50 for the next 3 years so it's now not possible to lock interesting hedges(6$-$7). Peyto will have to face the same music in the near future as their hedgebook average selling price is declining in the $5 area and production is rising like crazy. Hope they won't spin the threadmill too fast!

Missed those $18.50 also. Gharr!

Bullboard Posts

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