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Peyto Exploration & Development Corp T.PEY

Alternate Symbol(s):  PEYUF

Peyto Exploration & Development Corp. is a Canadian energy company involved in the development and production of natural gas, oil and natural gas liquids in Alberta's deep basin. The Alberta Deep Basin is a geologic setting situated on the northeastern front of the Rocky Mountain belt in the deepest part of the Alberta sedimentary basin. It acquired Repsol Canada Energy Partnership (Repsol Assets), which included around 23,000 barrels of oil equivalent per day of low-decline production and 455,000 net acres of mineral land. The acquisition includes five operated natural gas plants with combined net natural gas processing capacity of around 400 million cubic feet per day, 2,200 kilometers (km) of operated pipelines, and a 12 MW cogeneration power plant. These assets include Edson Gas Plant and the Central Foothills Gas Gathering System. The Company has a total proved plus probable reserves of approximately 7.8 trillion cubic feet equivalent (1.3 billion barrels of oil equivalent).


TSX:PEY - Post by User

Comment by sportstermathewon Jan 08, 2022 10:48am
158 Views
Post# 34296024

RE:newbie question

RE:newbie question I have been asking this lately also, once debt starts to reduce demonstrably, growth at 10% or more, you take what you can get when prices are high.  

Another question is as a lot of Peyto's production is longer term now, the decline rates go down so they don't end up spinning their wheels trying to just replace decline rates.

A good factor in this if you look at the production of ERH wells they not only produce a lot more, but it is the full curve all the way out.

So you need fewer drilling rigs to replace the declines you don't need as much capital spent each year.

Peyto is building pressure ready to pounce up at any time assuming we are not in the tsunami of rising interest rates time frame.  We all know it is going to be this year.

One other comment many may not know, Peyto's wells can last 50 to 100 years or more because it is tight gas.  As Gee says like an Annuity.  Thus the cost to reclamate a well are very very low on a yearly basis.  Whether they have to plug money away ahead of time for this I am not sure like putting money in a trust for a funeral plot.

I am mostly into PEY and CR and GXE.  Wish I had some VET lately but can't own everything.


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