Is management really being Honest? Supreme court ruling?Is management really being Honest? Supreme court ruling impacts future development
Attachie is the highest risk project in ARC portfolio of projects.
Attachie is a full cycle development project that will produce less than 30,000 boe a day, two years from now, if everything goes right. On treaty 8 lands with current treaty 8 issues and an uncertain outcome regarding negotiations with the province and the treaty people regarding future development. Attachie is a full cycle green field project and will cost the company 600 million dollars with no return from the project for over two years. The development of these areas is currently under negotiations with the Supreme Court, Treaty Nations, and Province of BC.
A single plant with no redundancy, in an area with no large-scale production, at a time that is years into the future, if the build out and resource development goes according to plan. Attachie does not sound like a way to reduce risk, management is not telling the shareholders the truth. Limited drilling history, production history, and very far north and very remote. With a recent supreme court ruling regarding the development of treaty 8 lands, did management mention the supreme court ruling to shareholders.
So, turning your back on 45,000 boe (Kakwa) to pursue full cycle economics with half cycle economic plant and resource base available in area with ARC’s largest booked reserves. This is dumb and costing the company hundreds of millions of dollars, lost opportunity, and increased risk.
The entire industry know that they want to push Attachie through and it will be announced in AUGUST, this project is not in the shareholders best interest, and introduces all kinds of risk.
Management does not care about shareholder returns on the 750 million of infrastructure sitting idle at Kakwa, and the largest provide liquids rich reserves base in the country. Management wants to pursue high risk adventures that satisfy their EGO’s, have treaty risks, legal risks, execution risks, full cycle risks.
Management is not telling share holder the truth about Attachie and what they are turning this back on at Kakwa. The supreme court ruling will change the landscape regarding development, and no one know what that will be, it will be negotiated over the next six months.
Going ahead with Attachie would be reckless and Irresponsible. It would expose shareholders to a lot of risk.