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Paramount Resources Ltd T.POU

Alternate Symbol(s):  PRMRF

Paramount Resources Ltd. is a Canada-based energy company. The Company explores and develops both conventional and unconventional petroleum and natural gas. It also pursues longer-term strategic exploration and pre-development plays and holds a portfolio of investments in other entities. Its principal properties are located in Alberta and British Columbia. The Company's operations are organized into three regions: the Grande Prairie Region, located in the Peace River Arch area of Alberta, which is focused on Montney developments at Karr and Wapiti; the Kaybob Region, located in west-central Alberta, which includes the Kaybob North Duvernay development, the Kaybob North Montney oil development and other shale gas and conventional natural gas producing properties, and the Central Alberta and Other Region, which includes the Willesden Green Duvernay development in central Alberta and shale gas producing properties in the Horn River Basin in northeast British Columbia.


TSX:POU - Post by User

Post by MyHoneyPoton Dec 27, 2020 9:29am
158 Views
Post# 32184999

Condensate King in the Making-POU

Condensate King in the Making-POUVii Generations is know to be the condensate king in Canada, and for a long time when people look at their high liquids ratios have assume that they are all Condensate, nothing could be futher from the truth. 
 
Q1   69000 boe/day Condy 35.7% condensate
Q2   64300 boe/day Condy 34.8% condensate
Q3   57600 boe/day Condy 34.0% condensate

Wapiti
To better understand the value of Wapiti Production, Wapiti is producing 56% condensate. Well that is significantly above the average percent condy that VII generations is producing. 

Karr
Karr lags Wapiti in Condensate produced at 49%, this still is a big advantage when compare with VII generation production. 

What does thei mean at a 60 dollar WTI price for condensate.

$60 WTI = 60/.7785 =  77 dollar condensate

.34 * 77 = 26 dollars of every boe VII generation produces is condensate
.56 * 77 = 43 dollars of every boe Wapiti produces is condensate. 

Assume everything else in the barrel gets 18 dollars a boe. (3 dollar gas)

.66 *18 + .34 * 77 = 38 dollars a boe  This is what VII generation boe of production is worth
.44 *18 + .56 * 77 = 51 dollars a boe  This is what Wapiti boe of production is worth
.51 *18 + .49 * 77 = 47 dollars a boe  This is what Karr boe of production is worth

So at 60 dollar condensate prices, Wapiti production is worth 34% more than VII generation production.

So clearly POU its really  early days in the ramping up of production, and Karr and Wapiti have a lot of room for adding volumes as they both have new gas plants in place, Maybe the condensate king of the past will not be the condensate kind of the future. Clearly Karr and Wapiti have more torque to condensate prices than does VII generation. 

So if condensate is King, Karr and Wapiti are the crown jewels of production.

IMHO
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