wembley is in the liquids windowthe Montney there is typically gas/condy. the norm would be say 5Mmcfd with 500 liquid. That is what I see thru the various presentations of kel and aav and arx and pipe.. the ones that report and work that play. There is a solid 50 miles east to west, lots of land. there is also an oil pool in the D3 layer, I believe. Same pool that runs thru Progress north of Wembley by about 50 miles.
so there is like zero problem getting land. kel has small production as does pipe and aav. kel has an issue with the takaway, you guys know the issue that ain't a problem you said, but it is. as production ages, the gas declines and they have a take or pay deal. they need to keep up the gas production all the while, kel wants to add liquids more so than gas, up that liquids number, that is all most retail investors even bother with, the numbers for netback is great. now a conflict, kel wants to grow liquids, the company NEEDS to grow gas at Wembley to fullfill A contract
That folks is why I have stressed owning your own facilities, control your destiny. they could have a plant, process their gas, save a few bucks of costs and.. not caring about meeting a gas production level. if you own the plant, you would have spare capacity and perhaps even sell it. hmmm, what a great idea..
wonderful management yes,
great assets, in some of the best rock in the Montney.
better return with a producer that has a drill to fill program, fill their plant (s) as that adds cheap production as incremental cost to process thru your spare capacity is near ZERO. That company type willl be minting cash and not needing a big capex to maintain growth and open new areas where the infra structure costs to be borne at Oak will be significant drag on cash flow.
those with spare capacity to really show massive cash flow would be nva for sure, aav bir and pey as offering better returns. None will grow like kel can. the others are limiting growth and building a war chest./paying down debt