RE:RBCI am a long bullish shareholder of Kelt always buying on commodity weakness and am quite impressed with the overall Q1 results especially Pouce Coupe. This is a great management team. However, even though hypothetiically not modeled, the flow back results in Oak Flatrock are a total disappointment (far from encouraging for a $6 million dollar well when even lightly compared to Inga and Pouce). These liquid rates are are potentially uneconomic in this tough price environment hence the tiny paragraph by management in the Q1 financials. This was one of Kelt's best prospects and represented considerable reserve and drill location upside.
RBC cut their target optimism saying it was merely the commodity price (there is truth to that but those commodity price fluctuations did not bother them before). RBC wants to stay in the future financing syndicate that is the ongoing conflict of analysts. The early days reminder at Flatrock statement is weak.
I am assuming that would have been Kelt's best drill location based on seismic with the best frack technology. Hopefully, the drill information can lead to a better location or Montney zone. Also perhaps the core can yield a better frack formula. Let's face it, this inital Flatrock drill hole was a hole was nothing less than total dissappointment regardless of spin. Hopefully, this negative result is not repeatable in the same way positve montney drill results are. My fingers are crossed that this management team can figure this out. There was no management indication the frack was pooched. The drill gods can be cruel given the cost of these wells. For Q1, the silence or limited information on that well was deafening. Come on Kelt, let's do this...