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ARC Resources Ltd T.ARX

Alternate Symbol(s):  AETUF

ARC Resources Ltd. is a Canadian energy company. It is focused on the exploration, development, and production of unconventional natural gas, condensate, natural gas liquids (NGLs), and crude oil in western Canada. Its operations are focused in the Montney region in Alberta and northeast British Columbia. Its operations in Alberta are located near Grande Prairie and the region includes Kakwa and Ante Creek. Kakwa is a condensate-rich and high-deliverability natural gas play with top-tier development opportunities. Its operations in northeast British Columbia are located near Dawson Creek and the region includes Greater Dawson, Sunrise, Attachie, and Septimus and Sundown. The Greater Dawson operating area includes Dawson Phases I, II, III and IV and Parkland. The Attachie is a condensate-rich, natural gas play primed for large-scale development. Sunrise is a dry natural gas play with a low-cost structure, well deliverability and direct connectivity to liquefied natural gas Canada.


TSX:ARX - Post by User

Post by Shaleguyon Sep 26, 2021 7:32pm
218 Views
Post# 33921406

Kakwa Recycle Ratios

Kakwa Recycle RatiosAs promised here goes. I modelled a Kakwa Nest 2 well making a million and fifteen Boes costing 12 million with 7.5 for D and C and 4.5 to construct its share of a new pad. This works out to an F and D of slightly less than 12 dollars per boe. I assumed the well made 430,000 bbls of Condy, 3 bcf of gas and the remainder NGLs. Due to the high prices I assumed opex and royalties of 18 dollars. I assumed a price of 70 dollars Condy over the life of the well as I don't believe these prices will last more than two or three years. I assumed a gas price of 4 dollars and an NGl price of thirty as well as once us drilling prices pick up NGls will tank. These assumptions give a recycle ratio of 3.13 which is outstanding. At 90 the recycle ratio 3.9. A 50 dollar Condy price drops it to 2.05 which is still respectable. My next chore will be to model a type Montney gas well making 7.2 bcf which is interesting enough 1.2 million boe.
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