CKE: Lowest Cost Montney Operator, Opex $8/boe (slide 13) New presentation is out. It shows once again that the company's total Opex in Q4 2017 will be at $8 per boe, see slide 13. This is what CKE recently guided to the market:
" We continue to execute on our previously announced $40 million capital program for 2017 and remain excited about the growth this program will provide. As we implement this capital program we will continue to closely monitor our balance sheet and commodity prices. As in previous years, we will remain prudent in how we deploy our capital in order to defend our strong balance sheet.
We have made great strides over the past 12 months to improve our cost structure, including completing the Craft Share Distribution and executing a new gas handling agreement in BC. On a per boe basis, our net production expense in the fourth quarter of 2017 is expected to drop by almost 30% to approximately $8.00/boe from $11.27/boe in the first quarter of 2017.
G&A is also projected to drop from $5.10/boe during the first quarter of 2017 to below $2.90/boe in the fourth quarter of 2017. As we begin to increase our production at Birley, our cost structure and profitability significantly improves."
This is a huge development that must not go unnoticed... Also CKE is debt-free and doesn't pay interest expenses unlike other indebted Montney producers such as Delphi (DEE), Cequence (CQE), Birchcliff (BIR), Crew (CR), Kelt (KEL), Trilogy (TET).
So the total operating cost per boe (production, transportation, interest expenses) of just $8/boe makes CKE the lowest cost operators in the Montney space after Advantage (AAV).
If you check all the aforementioned Montney firms have total operating costs per boe (production, transportation, interest expenses) above $10 per boe.
[url=htthttps://www.chinookenergyinc.com/wordpress/wp-content/uploads/2017/05/CKE-May-2017-Presentation-AGM_Final-jd1_uploaded.pdfp://][/url]