RE:RE:RE:RE:Pembina Cardium is sold. How much?You nailed the exact problem with this asset...to be only 6500 BOE on a land size that big...with vertical wells drilled so closely together over 30 years...it would be over 1000 wells easily.
That would be alot of BS for operators to look after as many stripper wells of a few barrels per day.
I am not familar with ARC that much but I used to know 7Gens well and I avoided it...one flaw that I thought would bite them in the a** at some point of in time.
I think they should have never took their production more then 140k-150k ish.
They were chasing the "per flowing" vaulation...chasing to have the highest number as possible thinking it would give them greatest value in a buy out. Problem is they couldnt find a USA partner with cash as everyone was chasing USA permain stuff.
Those assets should be developed thinking of a divy model...most FCF as possible.
I think Arc current management is making same mistake...the capex in Kawa is too high. Doesnt matter if those wells are coming in good...it will be still be in ground a year from now.
Letting production fall at Kawa would also lower decline rate as you would have way less flush production.
Arc should cut capex by 300M total with most in coming in kawa. 7gens has dumped billions over the years in that play...they have enough of a legacy base of wells it should hold at a decent spot.
Arc needs to desparatey raise 300M more so they can double the divy plsu a share buyback or triple it even....that is stuff that will move this stock.
POU annoucment will further make ARc look bad unless they do something.
Hope they do for you all and good news is coming soon.
MyHoneyPot wrote: This one is kind of hard to say, what is amazing about this play is the size of the land base and this is really a company maker.
So for a true evaluation you would need to look at the performance of off setting wells and recent land sale data.
That value is in the land base of over 200 net sections in a single play area.
IMHO