Chinook Energy Inc. Common CNKEF

RE:RE:RE:RE:Bouquets alias and CKE's 23% Liquids

[bouquets]

Stockfy.  Sure, we can include the oil if you want; indeed, we should include it if we're talking about Chinook's balance sheet.  But it's important to remember that this oil comes from a handful of Chinook's legacy Baldonell wells.  It's not like the condensate and NGLs that are part of the product of Chinook's (and Storm's) Montney wells. If we're comparing these companies' *wells*, Storm's are materially 'wetter' (17% to 12%), and slightly more productive when comparing each well's progression down its supply curve.

As for PPY and the wells it got from UGR wells, their economics are different.  The gas is dry-dry-dry, and so less valuable.  But some of the UGR wells are extraordinarily productive.  UGR's well A-058-B (bottom-hole), for example, produced 9839 cubic meters of gas in January, with no free condensate. (I have access to the monthly well-by-well production.) That's one well.  All six of Chinook's Montney wells produced 9946 cubes in January, but with about 5% free condensate at the wellhead. (More is pulled out the stream in processing.)  This one UGR well is exceptional, of course, but highlights why PPY was willing to pay a premium to acquire these acres.  Yes, dry gas is a lower-margin product, but if you sell enough units there's good money to be made. But that's a different game than what Storm and Chinook are doing.