GREY:CNKEF - Post by User
Comment by
stockfyon Apr 25, 2017 4:12pm
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Post# 26164726
RE:2018
RE:2018Including the 4 Montney wells that will be completed after spring break up, annualized cash flow in Q4 will exceed $15 million based on today's oil and gas prices.
Forget also the existing $8 million credit line. The bank will definitely increase this reserves-based credit facility in early 2018 because CKE will increase significantly its 2P reserves thanks to the aforementioned 4 Montney wells. So the new credit facility will most likely be about $15 million.
If WTI rises by year end, it will help a lot because CKE's Montney wells produce significant Free Condensate volumes. At restricted flow rates, its 3 latest Montney wells flow with 10%-20% Free Condensate which sells at a Premium to WTI:
The a-71-F well has been on production for 8 days and is currently producing at a restricted gross rate of 3.9 mmcf/d and 77 bbls of free condensate per day (gross - 724 boe/d).
The d-95-F well has been on production for 8 days and is currently producing at a restricted gross rate of 3.7 mmcf/d and 154 bbls of free condensate per day (gross - 774 boe/d).
The c-95-F well has been on production for 4 days and is currently producing at a restricted gross rate of 3.5 mmcf/d and 111 bbls of free condensate per day (gross - 690 boe/d).
Let's go first to mid-2018 and then we can discuss about 2019. It's too early to make projections for 2019.