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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 SecondhandGnuson Aug 17, 2022 8:55pm
164 Views
Post# 34903707

RE:RE:RE:RE:New land for PEY at approx. $391/ac during Q2

RE:RE:RE:RE:New land for PEY at approx. $391/ac during Q2

They did complete the Montney well after a delay (easy to miss--see Nov. 2019 Peyto presentation)--it had the lowest IRR at the time of all of their well species (10%), but that was to be expected on a $7.5MM well on their first try.  With the AECO price crash they couldn't afford to fine-tune their drilling+completion recipe, but now they can, with much greater potential reserves if/when successful.

Peyto specifically mentions AB Montney along with the Spirit River expiries that they can potentially pick up over the next 4 years (see p.30 of last 2 company presentations).  I don't believe for a second that this detail is coincidental, since PEY hasn't mentioned the Montney for the previous 2 years.  Their retired/rehired VP Scott Robinson is responsible for new projects, and I'll bet this one is being looked at once again for 2024 and after.  

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