RE:PROBABLE STOCK RISE/KATUSA NEWSLETTER UPDATEThis from TD: Results from Kelt's first exploratory Montney well on the recently acquired land at Pipestone/Wembley (just north of Grande Prairie) were a success, in our view. This initial well is located on the southwestern most corner of Wembley and successfully averaged 1,567 BOE/d over a five-day test period, comprising 64% oil, 20% NGLs, and 16% gas. The well will be on production mid-November. Recall that in January, Kelt disclosed the acquisition and ownership of an incremental 78 net sections of land forming a southeastern extension of the company's Valhalla/La Glace operating area (taking the total to 122 net sections). Kelt is now planning to follow up this successful exploration well with at least another three horizontals by the end of 2018. Although it is still early, we believe that the productivity of this initial well at Wembley could be as prolific as Kelt's existing Middle Montney oil wells at La Glace, approximately two townships to the northwest, where the average IP30 is approaching 1,000 BOE/d (67% oil). We also note that this initial well at Wembley was also drilled longer and completed using a higher intensity frac, and cost $5.7mm all-in relative to the $4.6mm at La Glace. Kelt also announced the shut-in of 3,770 BOE/d of dry gas production over a 30-day period due to unsustainably low AECO gas prices in September. The impact to annual production is expected to be only 310 BOE/d (1%), with an associated impact of less than $1mm (<1%) to cash flow guidance. as a result of continued low gas prices, kelt is also delaying the tie-in of 1,000 boe/d of production in bc, but it has added a number of new hedges effective november 1 to diversify exposure to a number of different north american hubs. to="" cash="" flow="" guidance.="" as="" a="" result="" of="" continued="" low="" gas="" prices,="" kelt="" is="" also="" delaying="" the="" tie-in="" of="" 1,000="" boe/d="" of="" production="" in="" bc,="" but="" it="" has="" added="" a="" number="" of="" new="" hedges="" effective="" november="" 1="" to="" diversify="" exposure="" to="" a="" number="" of="" different="" north="" american="">