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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 Dec 11, 2021 11:07am
266 Views
Post# 34221611

What I'd Do to Sell the Virtues of Kakwa

What I'd Do to Sell the Virtues of KakwaFirstly I'd invest in some detailed reservoir analysis, more nit picky rather than difficult to show reservoir characteristics and production profiles. I'd show the ultimate recoveries and declines. So what if year one shows a big decline as long as the late life production is steady what's the big deal . Show ultimate recovery. From what I remember nest 2 wells are estimated to produce 900,000 bbls of condensate plus NGls and at least 3 bcf of gas I think this is what MHP is getting at. Then I would hire a US reservoir engineering consultant to compare Kakwa to the Permian. I think we are better but you have to prove. Then this comparison along with the type curves should be front and centre of the presentation. That said, Kakwa is break even at 40 dollars cdn, ok at 50, very good at 60 and stellar thereafter. If you believe Eric Nutall and I give a bull run an even chance of lasting five years then the Arx and Kawkwa is a cash machine. The bottomline is human nature is such that if you don't give all the facts people assume something is wrong.
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