RE:RE:Land is King & Kelt Has Wealth of italso
besides the two, kel and crew as being the other TWO, you think are the only ones with this drillable land.. there is the private corps, did you hear of Jupiter before TOU bought them for tha Montney land, and Jupiter was a big company. OR.. what about the American's?? hell they own tons of it, many have sold but several big ones still operate there. Even the Cdn biggies like cnq or cve sell projects, hell that is how hwx in oil started and in gas there was the NVA buy from CVE of Pipestone.. a few years back. many others thru the news, plenty of opportunity to own Montney land, if you want to and have the money to, no real shortage of big value to run out to own it cuzz it sells all the time, it churns thru the years and there is plenty to go around, so not a scarcity value you may think is there, unvalued in the market, don't see that idea.
No do not think this land is ultra valuable cuzz the land goes on far as eyes can see, over and over and over again.. and that land gets sold or moved or produced, there is always turn over, like a stock, land changes ownership, so cuzz kel has a monster large land base, it is not like Pipestone, yet, You think kel could have bought all of Pipestone? for the same price per section as oak/flatrock? no sir. all land is not valued the same and kel, being out there, maybe on the edge of productivity of the Montney.. not same value.. nor is there a shortage, as it changes hands all the time.TOU goes thru buying land up from others
the value here is not for the land yet. It is can they produce it quickly or is it a few years to put in infrastructure.Infrastructure can be expensive and will be at Oak, more so then around Dawson. It is quick and easy to drill and then complete wells. You can poke holes to your hearts content at $7 mill a throw. you need wells piped, to a processing plant. how much gas processing is there at Oak area? you know?? drill away but standing wells are just expensive holes. funny thing is all this infrastructure is really a big spend and just a neccesity, but it is both a cash flow thing, it is also a cost thing. but it is control of your future to a big extent also. I like companies that own the plants, but that is gettin rarer with the mid streamers and royalty players liking to own that stuff and charge ya $1 a mcf thru their plant. kel never really were big at it tho. maybe a challenge for them
I am not up on who has plants at Oak. Well kel has the compressor station, must have a seperartor plant there to get the liquids, and then to the plant, must be some within the range of that big compressor they put in. how much capacity and the cost is what matters biggie.
ummm, someone here must know please