Credit facility leftJuly '12 Presentation
Undrawn Credit Facilities US$42 million
Comprised of approx. 26% condensate, 39% natural gas liquids (“NGLs”) and 35% natural gas
see: Rush to liquids backfires for natural gas producers
https://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/rush-to-liquids-backfires-for-natural-gas-producers/article4570777/
“Today, you’ve had almost a 50– or 40-per-cent increase in [natural] gas prices, but the offsetting decline in NGL pricing has effectively made average pricing for a gas-focused producer the same,” Mr. Mageau said. “You’re realizing the same price today as you were in April.”
NGLs – condensate, butane, propane, and ethane – are extracted as producers pump natural gas. Energy companies are paid based on the volume and value of each separate commodity in the mix; the blended price reflects the varying prices and the fact that some NGLs make up a greater percentage of production.
In Canada, condensate and butane are the most valuable liquids, while ethane and propane are weak. Condensate, for example, typically trades at a premium to West Texas Intermediate crude.
Condensate, which is similar to a light oil and can be used to transport bitumen, is a key part of the liquids game. Dean Foreman, Talisman’s chief economist, said that in his company’s Eagle Ford play, about two-thirds of the production value is wellhead condensate, and the rest is gas and less valuable liquids.
“That’s the prize. That’s what people are searching for,” he said. While ethane and propane supplies are outstripping demand, that will not “fundamentally undermine” liquids-rich plays, he said, given the price that condensate commands.