RE:Kakwa with Condensate at $156 dollars/boeBlah blah blah and then you come out with your usual stupidity...."The problem that exists...."
No problem at all Stups. If you could comprehend the company presentations and the posts on this BB you would know:
- Kakwa production is being ramped up to 180,000 - 200,000 boe.
- Capex in Kakwa far exceeds any of the other areas ARX owns; S600 - $700 M in capex.
MyHoneyPot wrote: Moving forward with Kakwa will see some exciting production gains, are likely even more cost efficiency with increased activity.
Every boe at Kakwa that is added, is free from the clutches of the hedge book and will be valued at $110 dollars/boe based on the current production mix and commodity prices for the area.
So if ARX wants to grow at 5% anually most of that growth will likely have to occur at Kakwa for the short term anyway, and that is about 17,500 boe a day.
If Kakwa Produced 192,500 boe a day that would be a nice step up and 5% at Kakwa would likely add 8-10% to ARX cash flow.
The problem that exists right now for ARX is where is the growth at ARX resources going to come from? If they don't start ramping up Kakwa, the need to come to grips with a sun that has set at sunrise, and Attachie is risk of getting scalped by the first nations and BC government.
Kakwa is the only forsure thing going forward, giddy up little pony.... Head east young man to a land that is friendly to oil and gas, Alberta.
IMHO