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Peyto Exploration & Development Corp T.PEY

Alternate Symbol(s):  PEYUF

Peyto Exploration & Development Corp. is a Canadian energy company involved in the development and production of natural gas, oil and natural gas liquids in Alberta's deep basin. The Alberta Deep Basin is a geologic setting situated on the northeastern front of the Rocky Mountain belt in the deepest part of the Alberta sedimentary basin. It acquired Repsol Canada Energy Partnership (Repsol Assets), which included around 23,000 barrels of oil equivalent per day of low-decline production and 455,000 net acres of mineral land. The acquisition includes five operated natural gas plants with combined net natural gas processing capacity of around 400 million cubic feet per day, 2,200 kilometers (km) of operated pipelines, and a 12 MW cogeneration power plant. These assets include Edson Gas Plant and the Central Foothills Gas Gathering System. The Company has a total proved plus probable reserves of approximately 7.8 trillion cubic feet equivalent (1.3 billion barrels of oil equivalent).


TSX:PEY - Post by User

Comment by boarderex86on Jan 10, 2018 10:00pm
78 Views
Post# 27330152

RE:RE:Interesting paragraph from Birchcliff Q3

RE:RE:Interesting paragraph from Birchcliff Q3 I cant recall all the details but I believe the term can only be shortened if they serve notice of the termination some time in advance. That triggers an increase in the price they pay in order to compensate for the shortened term. Nothing is ever free. If you want to confirm the details you can look up the TCPL releases about their long term fixed price offering.
Yasch22 wrote: Just a couple more points of interest here.

1. Birchcliff's deal with TCPL is to ship 175,000 GJ/d.
That amounts to ~11.5% of the ~1.5m GJ/d total.

2. Advantage's deal is also to ship 20% at 2017 rates of production, or 55,600 GJ/d (3.7% of the total shipped by TCPL.) The interesting thing is that Advantage has the option of reducing the agreement by up to 5 years. So, basically, they're locked-in only for the first 5 years. 

I'll look up a few other agreements a bit later. It looks as if the trend was to settle at 20% of production. I still think TCPL had these guys "over a barrel", ha ha, and with the outages and what not made the situation look so desperate that they got most of the gassers as well as the NEB "on board".


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