88.48 WTI the MorningThat means condensate is trading for around 91.48 U.S. or about 116 Canadian. This is definitely a great price.
So while the #1 condensate play is running at 40% of it plants capacity, Maybe if Terry/ARC was really concerned about Capital Efficiency he would get more of the Top Tier montney production happening in a play area where Terry himself confesses that they have more than 10 years of Tier 1 drilling locations ahead.
Maybe the Management at ARC is just getting its head around Kakwa but the industry has known the potential of that play for years, and it is why everytime there is an investor presentation they ask questions hoping management will ramp up Kakwa.
Instead they tell the industry how they have found ways to spend 45 million dollars on dawson 3/4 in electrification. A lot of capital efficiency there. Or how they can spend 115 million on DRY Gas at sunrise, sound like real capital efficiency there as well, just kidding.
The poor performance of the ARC stock, is tied to the performance of management.
They don't know the rules for investment in Attachie, Terry told us their waiting to find them out. However he can spend/risk 75 million of share holder dollars, that sound like great capital efficiency to me. What happens if the terms the Blueberry come back with stink, they aready have 75 million sunk into the project, that are past the point of no return.
So Kakwa is an asset that today could produce 45,000 more boe of production with the infastructure and resource in place. With proven economics in now has to wait for years for capital while the shovels hit the ground and they build Attachie, electrify Dawson, and Full Cycle add onto Sunrise, sound like real capital efficiency to me.
This management team is as bad as it gets.
If they included the Risk Management costs in their capital efficiency they are the work regarding capital efficiency in the entire industry.
IMHO