Chinook Energy Inc. Common CNKEF

RE:CKE's Quarterly CF will jump sequentially by year end

[stockfy]

bouquets, please let me correct you because you make a mistake when you read MD&A in Q4 2016. In Q4 2016, you read that CKE produced 451 bbls crude oil per day and 613 NGLs (natural gas liquids) per day. But this figure includes Craft's production too. CKE's on an unconsolidated basis in Q4 produced 2,593 boepd and exited 2016 at 3,000 boepd as quoted from the latest press release below: 

" On an unconsolidated basis (excluding results from Craft), our fourth quarter 2016 production averaged 2,593 boe/d. "

So the bottom line is that CKE's 3 latest Montney wells don't have any low priced NGLs (butane and propane) according to the official press release, and all their liquids are high-priced Free Condensate (C+ pentane) that sells at a premium to WTI and boosts the IRR per well.

CKE also states it clearly in the press release and presentation, it's Free Condensate, there is not a word about low-priced natural gas liquids (NGLs) in their official results from the 3 latest Montney wells.

Miner1967 wrote:

CKE's exited 2016 at 3,000 boepd (unconsolidated, proforma the Craft spinoff) and will exit 2017 at 6,300 boepd while remaining debt-free according to the latest guidance. No debt, nothing and this must not be downplayed. This is a 110% production growth, which is unique in the energy space. See also this:

 

In Q1 2017, CKE's three latest Montney wells completed in February flow for only half quarter and also flow at restricted rates because CKE's compressor is filled to capacity, as quoted below:

 

"With 9 (7.63 net) wells on production in mid-March at partially restricted rates, the 25 mmcf/d compressor built in 2016 is filled to capacity."

 

These capacity constraints make CKE expand it from 25 to 50 mmcf/d in the next weeks. 

 

In Q2 2017, CKE's three Montney wells completed in February will flow for a full quarter at restricted rate though, because the compressor expansion will not be ready.

 

In Q3 2017, CKE's three Montney wells completed in February will flow for a full quarter at unrestricled rates because the compressor expansion will be ready. Also, CKE's quarterly cash flow will get a second boost because the new 4 Montney wells will be completed in mid-Q3, as quoted below:

 

 

• " We have commenced construction of a new drilling pad to drill four (3.67 net) wells through spring break-up and will complete all four shortly after spring break-up. "

 

In Q4 2017, CKE's three Montney wells completed in February and the four Montney wells completed after spring break-up will flow for a full  quarter at unrestricted rates resulting in another boost in cash flow and another boost on the 2P Reserves in December 2017.