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Kelt Exploration Ltd T.KEL

Alternate Symbol(s):  KELTF

Kelt Exploration Ltd oil and gas company. The Company is focused on the exploration, development and production of crude oil and natural gas resources in northwestern Alberta and northeastern British Columbia. The Company's assets are comprised of three operating divisions: Wembley/Pipestone in Alberta; Pouce Coupe/Progress/Spirit River in Alberta, and Oak/Flatrock in British Columbia. The Company’s British Columbia assets are operated by Kelt Exploration (LNG) Ltd., a wholly owned subsidiary of the Company.


TSX:KEL - Post by User

Bullboard Posts
Comment by pablo87on Sep 10, 2020 6:11pm
110 Views
Post# 31539932

RE:Stock acting strange.....

RE:Stock acting strange.....There are 2 explanations. First, the market as a whole has tanked. MEG is down 30%, CVE down 23%, Kelt down 25% (from the $1.89 it was at for a while).  CNQ and TOU the top 2 names in Canada are down 15%.  CNQ and CVE are at their May 21 level when WTI was $33. Gas is better (TOU and ARX up today) for the quality names because its more of a local market less impacted by global events like oil is.  Company like KEL follows the trend.

2nd, the metrics to value E&P's in Canada - boe/d - are questionable.  Kelt has no debt, just about every other small to mid E&P is in debt up to their eyeballs.  That means while there is a BK risk for them, there isn't for Kelt.  Also, in any asset purchase, Kelt is going to get the upper hand.  Secondly, the quality and quantity of Kelt lands relative to actual production, is also in a class of its own.  While most producers are producing most of their best lands for less than 4 quarters to a dollar, Kelt while also producing for less than 4 quarters to a dollar, is producing a fraction of what it could - they're basically leaving it in the ground. And they can do that because they have no debt.

Also, Wembley seems to be a top notch asset, the EURs are better than Inga/Fireweed. Kelt's EURs are basically the same as what Canadian Natural has reported thus you can take them to the bank.


The only thing to do is wait. Eventually, the cream will rise to the top.
Bullboard Posts