producing gas cheap is the playaav has such low costs, like $2.50/boe so what we see now is this wall of cash. I chuckle as I refect on Paul Baay uttering such but aav actually does it, they are at 270 Mmcfd . meaning with 130mmcfd head room, it is not possible to make a case for oil EVEN AT $70. at these gas prices, and perhaps even higher come thid winter.. this Glacier gas is simply a license to print money
However, having seen, had a peek at Progress from the several wells AAV has drilled and now geo-targeting of this D2 zone to lay that drill stem about 2 miles on the horizontal opens the frac crew to one long fractured layer of rock to get that 1500 boepd these flush flowin monsters have been proven to give.
in the background is always entropy and what knid of cash they raise on this newco, but as green as it comes so it should attract the green funds maybe ,to support a solid launch.
dweebs like nutal do not get it, gas can compete with oil, aav can sell gas at better return than anyone except maybe tou.. it is cheap gas thru their big bad plant, so new gas has next to zero costs to produce cuzz of their plant.. Owning significant infrastructue, as this plant, locks down that portion of the Montney, that Alberta border and those first dozen sections.. all AAV and so, other land owners cannot reasonbaly build their own plant, not that much open land there... this is the value of owning a plant that big..
it is manufacturing now, drill complete manage the money.. they spend $20 milltion to get back $25 mill the next year? hell ya, that is making money the legal way.
I lov the wildcats but to leave this play right now and thru the YE is only sensible if you have a better replacement opportunity and I have looked for such for this year, really for a year, nothing comes up. run the numbers today and they seperate themselves even more from the peers
This comes up as the one to own.. I do not lie, better then last year when it was $2.. I mean is it tripling? no... but for the next 6 months it could double.. says my numbers.