Asset Rich in a Commodity Boom
Thats how i would describe POU, asset rich in a commodity boom.
South Duvernay all of a sudden is a lot more interesting, and with Chevron as your partner, they are really not that bad. The economics of those wells always worked, but with gas prices in the five dollar range they work a whole lot better. The last well drilled in the south duvernay average 1500 boe/day with 199 CGR, really good economics in this price enviroment.
Nuvista OMG - today high $4.87
At 5 dollars NVA is almost worth 200 million to POU balance sheet. A great way to pay off debt JR showed up is to buy 17 million NVA shares at 60 cents, to bad the banks are offside for those kind of moves.
Willesden Green what to expect, the last well i remember was about 1000 boe/day 86% oil, but that was not a 4000 meter well, and if you look at the map in the presentation all the other wells look a little stubby to this new 4-7 well. 4000 meters lateral, 7400 meters in total.
Shells gone buy now Cresent Point has been beating a path to JR office because with all the fires this summer it has a little bit smokey, and they simply can't get smoky duvernay off their minds, I expect Cresent Point wants that land,it is in the heartland of all shells drilling.
Onward and upward, 20 dollars for POU in the next few months.
IMHO