RE:No Exploration Risk - (Cha - Ching)MyHoneypot, this is your best idea so far. Maybe not $225M but something like $90M mezz debt to exclusively drill Wapiti would be reasonable to me. Get them out of the quagmire. I can say that, I own KEY.
MyHoneyPot wrote: Keyera anxious for Wapiti - after more than a billion dollar investment Keyera is 2 days away from restarting the Wapiti for hopefully the last time. The issue they have to deal with is 1 billion invested and Wapiti only producing 12,000 boe a day in the fourth quater.
Wapiti to get to capacity need another 30 wells, or about 225 million dollars invested.
That will heal all the hurts between Keyera and POU, so 225 million dollars does not sound like a lot of money to bring on 25000 boe forever, or at least the next 25 years with a billion dollar plant sitting in the wings.
This is low risk and with all the infastructure in the area it is a slam dunk. Maybe Keyera will finance the 225 million themselves, it is a win win situation.
Then POU will be something like this.
40,000 karr 37,000 wapiti, 30,000 every thing else.
107,000 boe *(28-12) * 365 = 624 million in netbacks or about $4.60 a share in netbacks.
POU is a 25 dollar stock.
IMHO