RE:RE:Observations on PIPE and NuVistaRuudinFrance wrote: oilman1111 wrote: Couple of points which should elevate PIPE in the future above it´s peers:
- If you compare PIPE to NVA in 2023 (which is not far away, we all know that the future is traded at the stock exchange), PIPE is projected to generate FCF of CAN 125 mio vs. CAN 140 mio (NVA, their high capex scenario). Both assume USD 55 for WTI in this future outlook. BUT...PIPE´s production is 40,000 BOED and NVA is producing approx. 85,000 BOED at this point. So PIPE is generating nearly the same profit with less than half the production in 2023.
- Second point fits into first. Corporate presentation slide 15 - Significant Greater Pipestone Area processing options available for future expansions- This phrase is new and is an outlook what could be on the horizon. To expand the production further above 40,000 BOED, there would be a bigger investment needed in the range of 50+ mio. I don´t have exact numbers but I would assume 50 mio for additional 15-20,000 BOED. This could be funded be the generated FCF. Truely incredible what PIPE could become in the future without dilution and private placement.
- Reversal of Southern Lights starting in 2023 will support condensate pricing.
- PIPE is now drilling mostly in VRGC1 and 2 but 3 (more condensate) is the most economic and represents the majority of PIPE´s land package.
- Slide 9 in corporate presentation - Three well 8-15 pad producing in-line with a VRGC3 condensate profile- 8-15 is in VRGC1, so it looks like some pads will be producing according to their highest expectations.
- PIPE´s debt to FCF should be 0.1x by the end 2023. As well a huge advantage compared to it´s peers.
Please note that all calculation where made with WTI at USD 55.
To summarize it, huge potential here for creating shareholder value.
Nice one Oilman,
your number 3 was next on my "superfluous" list, but as stated, I got tired ;-)
your number 4 (without the VGRC nomination), I mentioned several times before.
Never a peep from anyone, never a challenge, never a question.
Former BBI land is of better quality than former Pipestone land.
But why is that so? VGRC says it, or do all investors here know the reservoir well enough?
Have fun.
I think it was always mentioned that the more east you go, the more condensate you get but less pressure/ flowrate.