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Pieridae Energy Ltd T.PEA

Alternate Symbol(s):  PTOAF

Pieridae Energy Limited is a Canadian energy company. The Company is an upstream producer and midstream custom processor of natural gas, natural gas liquids, condensate, and sulphur from the Canadian Foothills and adjacent areas in Alberta and in northeast British Columbia (BC). It owns and operates three sour gas processing complexes at Waterton, Caroline and Jumping Pound. Its footprint covers over a million gross acres (807,000 net acres) in the Foothills and makes up conventional gas reservoirs in North America. Across Alberta and British Columbia, its footprint stretches over one million gross acres of land, with ownership of three deep cut gas plants and more than 3,800 kilometers of pipelines. Its foothills include the southern foothills, central foothills and northern foothills. Its southern foothills have three main fields: Waterton, Carbondale, and Burmis. The Company also has a production facility in the Northern Foothills of Alberta and in Northern BC.


TSX:PEA - Post by User

Comment by ofirmeon Jul 01, 2021 8:14pm
157 Views
Post# 33480421

RE:RE:RE:RE:RE:FID soon

RE:RE:RE:RE:RE:FID soona few things about your questions:
1. Goldboro is sucking a ton of money each quarter and it is all EXPENSED as it can be 
     considered capex only if an investment decision was made with the finance in place.
2. Hedging - until now a large percentage of the ng & ngl had to be hedged (60% for
     8 months), but now the production can be hedged at higher prices and they are not 
     made to maintain 18 months for 60% of the volume. on the ng side (0.25 bcf/d) a 
     $0.50 per mcf means $125,000 per day of extra revenue. if you assume 75% margin
     on the added revenues, you are talking $68M per year addition to cash flow.
     improved oil price means another $10M more or less and ngl will add too. 
3. In order to make Goldboro an asset and not a liability, it probably needs to be sold.
    the people who will make money out of the project are northeast producers (just like 
    Cabot did ng long term deals few years ago) and the pipeline owner that leads to the
    site (Enbridge). running the Maritime & Northeast just for local usage is going to be not
    very profitable at all. running another 1.4 bcf/d could add $300M per year of revenue 
    that is mostly pure margin. that should make the project very economical for them. 
   Here is how the economics look for Enbridge:
    $8.5B costs (assumed) x 6% interest rate for 20 years (1.06 ^ 10 due to straight line 
    reduction of principle) / 350 days (turnaround each year etc) / 1.3 bcf/d (93% utilization
    at operational days) = $1.68 per mcf. that is for 20 years operations only. 
    operational costs should also be the liquifying of the gas (in the gulf 10% of gas, here 
    should be much lower - assume 8%) + costs of the plant operatrions = ~$2.20. 
    add transportation costs + ocean transportation. 
   Considering the ocean transport transit time vs the gulf being much shorter, Enbridge 
    should be able to run a very competitive operation vs other lng shipping points. last 
    point to remember is that in basin discounts in the Marcelus are so high that ng coming 
    to NS would be hh value or less. even with a $2.75 - $3 per mcf total add costs, it is 
    still very competitive in international price terms.
   
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