Crew Energy - Future Looking Great - Nothing out of whack He Crew saw a long overdue share price increase this week following a positive report from the company. This is the beginning of an upward trend that IMO will take the share price to over $1 in Q1, 2021.
Crew's extensive Montney acreage (277,000) is located in one of the most prolific areas of the BC Montney play directly bordering Shell, Arc and CNQs prolific plays. There is not a chance that all 3 of these producers are not seriously looking at absorbing Crews large play. My gut feel is that a takeover is quite possible by the end of Q2, 2021
Mrnomo questioned the value of Crew vs the value per flowing barrel of AAv and Birch. These are good companies like Crew and I think AAV like Cr is undervalued, and maybe Birch too. The difference IMO is the location, acreage size and reservoir quality. Crew has 277,000 net acres in the core of BC Montney, whereas AAV has 134,000 acres in the AB Montney( Bir has 264,000 gross acres in Ab Montney). Also AAV's gas stream is 94 % NG and 6% light oil & NGLs. Crews gas is approximately 78% NG and 22% NGLs & condensate. This equates to a much higher heating value and therefore price.
Crew is currently concentrating on their Septimus lands as the infrastructure is in place, but their massive Groundbirch property has tremendous potential, but the money for Crew is just not available at this point to develop it. I would personally not want to see this 156 section play divested to pay down debt as its value is huge. As most of you know a land sale in May of 2018 collected $3.5 mm per section and was located adjacent to Crews Groundbirch property. There are several horizontal production pads located immediately adjacent to Crews lands.
My guess is that Shell or CNQ or both feel they cannot lose this opportunity.
TC Energy's North Montney Pipeline which went into service in Jan 2020 runs right through the Groundbirch property and just on the edge of the Attachie properties. Crew Properties are in close proximity to TC, Alliance, Enbridge and the currently being constructed Coastal link LNG line. I cannot think of a better location..
The only question now is whether Crew will have a chance to develope this great play before it is taken over by one of the big producers on the block.
Either way I believe the shareholders have seen just the start of good things to come. We just need a little patience (or do we?).