Massive Liquids Plays
Over the past number of years i have focused all my attention on Liquids Rich Plays becasue that is where the big returns our.
Companies like CPG, ERF, NVA, POU, VII, etc - Primarily Montney
The issue that is common in them all is the production of these plays is plauged with risk, never have i seen one of these play come on stream without major technical issues around, field compression, water dispossal, pressure, flush production, and the plants liquids handling capacity and plant reliability.
How many companies do you see in this enviorment sanctioning Green Field projects that require band new plants, i talked to a major midstreamer yesterday and asked that question. It is just not happening the way you would expect with over over 70 dollars.
This is an enviroment where you want to make hay. All the type curves have changes for these plays expecially when you and plug in 70 dollars U.S. oil. I would expect that a companies plan is not independant of the current price enviroment, it will be interesting to see what managment at ARC comes to the table with. If the pembina asset is sold, it may of accelerated it debt reduction objections, and they may of already be met.
In any case a 14 dollar share offer from TOU, would be a good reason for me to stay in the stock.
IMHO