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