RE:JV sections in the southeast corner I just came here to discuss this! On one hand the land was swapped fairly cheaply [total $10M for 12k acres at Gold Creek and 21k acres at Simonette with a bit of production]. On the other....:
In the video that was just posted here yesterday (thanks for that!) he explicitly mentioned looking forward to the 4 well program by SDE as further proving out PIPE's eastern acreage. I know it's obvious, but so rarely is a story this simple, concise, and you hear your thoughts echoed back to you by management.
So the undeveloped land has little value now, which we knew: it's not in the NAV, there are no locations booked there. But it is being developed now and the runway for Pipestone peak production will get longer as a result.
In the presentation posted yesterday a couple other things jumped out at me:
- Accerlating the development plan is possible (read: likely) after the connection to Hythe is online in Q4 if current pricing sustains.
- The plateau production that is ideal for the asset base is likely much higher than their targeted 3 year plan of 40k boe/d
- There are a few potential processing plant expansions 'on the table' right now, one of which I think must be TWM: they said as much in their Q1 call. I don't think TWM could afford it right now, but with the play proving out and maturing, and the customers suddenly looking like they'll survive, I wonder if TWM is planning on selling an interest in their plant to a bigger fund with cheaper cost of capital?