Painted Pony Pete Ltd PDPYF

Ccord quick draw

[Tobuyornot]

Painted Pony Petroleum* (PPY : TSX : $13.35), Net Change: -0.40, % Change: -2.91%, Volume: 1,402,198 Full steam ahead for the Montney Clydesdale. Painted Pony announced the disposition of all its Saskatchewan assets for total consideration of $100 million. These assets included proved plus probable reserves of 5.3 mmboe and 34,600 net acres of undeveloped land. On a flowing metric PPY received $102,000/flowing boe, which is in line with recent Bakken light oil transactions. Canaccord Genuity Energy Analyst Anthony Petrucci highlighted that while the sale of the Bakken assets does not come as a large surprise, it adds further line of sight to PPY’s aggressive spending and growth plans in the Montney, with the company now at zero debt on the balance sheet. Also after the close Monday, PPY announced Q2 production estimate of 14,900 boe/d which is ahead of Petrucci’s estimate of 13,999 boe/d. This is after already revising its Q2 production estimate higher twice this year previously. In Petrucci’s view, the recent switch in completion methods in the Montney continues to drive production higher. PPY remains Petrucci’s top pick in the Junior and Intermediate space, and he recently added the company to the Canaccord Genuity Canadian Focus List.