Peyto Exploration & Development Corp T.PEY

Alternate Symbol(s): PEYUF

Energy Oil & Gas E&P

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).

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Peyto Exploration & Development Corp

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Comment by ceremonyon Mar 13, 2018 3:16pm

31 Views

Post# 27708556

RE:RE:RE:RE:RE:A lot of Alberta companies complaining abt NGTL/TransCanada

yes gas that could be supplied by alberta producers is being supplied by USA. why? because of market economics. they are CLOSER to market and have s a lower cost supply when fully burdened with tolls. that is due to the dysfunctional system in place in Canada, thanks to the TRP monopoly and plodding regulatory bodies, and the FUNCTIONAL system in place in USA.

I don't believe you've made your case. it may be that I am just not getting it, and have never seen your theory adressed anywhere else. or it may be that you need to flesh out your theory a bit more and make it more comprehensible fo for this audience. But I continue to believe that the issues lies in Alberta.

I think it's pretty simple. the bottleneck is on the Nova system, the NGTL.

New ideas and theories presented here are always enouraged. And thanks for presenting this one.

Yasch22 wrote: By "main complainants" I suppose you mean "quoted complainants." There are many more. The interesting thing about the article is that the complaints were aimed at the new system in place, and came not just from Peyto (the orphan) but from two producers who are actually part of the Empress-Dawn long-term agreement.

The bigger issue -- my original point -- is that gas that could be supplied from Western Canada through a pipeline regulated by Canadian authorities is instead being supplied by the USA. The set of notes quoted from the NEB in my last post all show export points in Ontario that have become import points, or show that TransCANADA has been making firm deals with American companies to expand its importing infrastructure.

20% of egress from the WCSB is via the Mainline heading east. Total capacity of the Mainline from Empress to Manitoba alone is well above 5 bcf/d. Presently, less than 3 bcf/d is being sent.

Capacity from Manitoba to North Bay (first point of the Eastern Triangle) is at least 3 bcf/d. Presently, somewhere between 1 and 1.5 bcf/d is shipped over the Northern Ontario Line (Station 41 in Manitoba to North Bay). The markets east of North Bay are being supplied more and more by gas from the USA.

The value of the Mainline for WCSB producers would be increased if capacity was fully utilized. For this to happen, the top leg of the Eastern Triangle -- from North Bay to Ottawa and Montreal -- would need to be fully utilized. The same goes for the leg heading south to Toronto, to Vaughn.