RE:RE:RE:RE:RE:RE:RE:The Swap Here is one clue........key word is Type Curve....jmho
However, speculation around a potential deal puts focus on the company’s upstream assets, which could be central to a sale. Those assets still need to be proven to be competitive with other producers in the region, a snag that could dampen interest from buyers, according to data compiled by RS Energy Group analyst Brook Papau.
Petronas came to Canada in 2012 following its purchase of a substantial swath of natural gas assets in the Montney formation of northeast British Columbia. Since then, companies operating in the region have invested heavily to improve the efficiency of their wells, as low natural gas prices have pressured producers to slash costs.
Meanwhile, Petronas has focused its upstream expenditures on determining the size of its reservoir — rather than on boosting efficiency or growing production — in order to prove to potential buyers that the company has a sufficient resource base to fulfill long-term supply contracts. As a result, the efficiency of its wells has fallen behind that of its peers.
“They’re not going sell this asset, I wouldn’t think, using 2012 capital efficiencies of these wells,” Papua said.
“We haven’t seen the same improvement in Petronas’s type curve as we’ve seen in almost every other operator in the basin,” Papau said.