46% facility UtilizationKakwa per BOE/Mix
35% Condensate
23% Liquids
42% Gas
That make every boe of production at Kakwa worth over $80 dollars Canadian a boe, with gas at $7 dollars U.S. and Condensate $107 U.S.
So your asking yourself, should we pour more money into Attachie? yes before we have a first nations agreement, and yes before Trudeau tells us what the new enviromental standards will be, then kick off a 2 year build out for the Attachie project. Maybe then they will figure out what the real economics will be and tell us in a meaningful way, ROI, Type Curves, etc. However as we speak we really don't have a development agreement in place with first nations, and my guess is that all the costs will increase, a bigger spend will be required to address all the first nations and enviromental concerns, both moving targets.
When is the sun going to rise over sunrise, that announced the spend, but they really don't give shareholders any insight to project start dates and how they may impact CF and production. Maybe that is because accounting prepares all the presentaions.
What happened at Kakwa, when they capped the production there to pursue a small improvement in efficiency they were budgeting 1/2 the CF per boe that they are currently receiving today. With the published drilling cost reduction of 16% you would expect that the highest netback barrels in the ARX profolio to be valueable to management, but no?
Something smells is the Arx kitchen.
Maybe they have a requirement to buy out the CPP investment from the company, before they can increase production, god only knows. It makes no logic why 1 billion plus of working plant infastructure is sitting idle.
Last Dec TOU brought on a new plant early, and it was pretty well full from the day the comissioned the plant because that was their plan. 46% plant utilization, 1 billion plus of infastructure sitting idle makes not sense to anyone, and may it is really a sore spot for investors and speculators, it make no sense to the world.
I however did see that they were hiring engineers, and not accountants, that may be a good thing and perhaps they are finally ready to ramp up that 1 billion in plant and infastructure they have had sitting idle are Kakwa for the last year.
IMHO