POU executes on Karr while Kakwa Potential stands still....Across the river from Kakwa POU drilling into exactly the same play, in fact they way sold a good portion of Kakwa to VII generation for more than 2 billion dollars.
Montney News - Is ARC not a Montney Player?
These wells were highlighted in the top 10 IP gas rates of all montney wells for the month of july 34-065-05w6 (Paramount), just next door to Arx Kakwa Montney wells that ARX recently drilled. One of the wells produce 8285 mcf/d of gas over 717 hours of monthly production.
Considering that they wells in this play are generally are 50-55% liquids (87% condensate) that suggests. Production rates for these wells that cost a little over 6 million dollars are approaching 3000 boe a day. Making CF per boe over 50 dollars at current spot prices.
How long does it take to pay back 6 million dollars with wells that have cf of 50 dollars a boe and lets be conservative and produce at 2500 boe/day. (48 days, with cash flow of 125000 dollars a day)
This is what are management is turning its back on, and under funding. These types of plays.
IMHO