Chinook Energy Inc. Common CNKEF

RE:how to pizz money away

[blegenfell]

Don2018 wrote: We drilled and completed two (2.0 net) vertical wells on a 21 (20.5 net) section parcel of contiguous Montney rights at Martin, located five kilometres north of our main Montney land block at Birley, to determine the existence, thickness and quality of pay in the Montney interval.  Each well was perforated to obtain pressure information, and will be fully abandoned in the first half of 2019 

WTF?

The full quote is "…will be fully abandoned in the first half of 2019 to satisfy flow-through financing obligations".  Apparently, the tax break for exploratory wells requires them to do this.  I suspect, too, that exploration wells are not very good for production anyway: they have no horizontal leg, they are not fracked, etc. They're designed to get you a core to examine as cheaply as possible. (And I think that they'd need a different permission from the province.)  But someone else might know more about this.