RE:RE:RE:RE:RE:RE:New land for PEY at approx. $391/ac during Q2I had a lot of typos in my last post.
I enjoy debating with you. It's clear you follow these companies and have a soft spot for peyto, as many do. There are a number of you out there that have a soft spot for Peyto, despite all their issues and screw ups, and despite clearly superior companies that are or were available at similar or cheaper prices. peyto has created that loyalty intentionally. And it has worked for them in courting internet influencers who act as advocates for the company. And, you are not an angry debater, like so many here.
btw they announced the completion in early 2020. But I take your point.
They put one Montney well online apparently. from that big block of Montney land they bought and had been touting as their next play.
From my observation of Peyto they DO NOT LIKE to do anything out of their comfort zone. They did not want to ship gas to the lower 48 until they were forced to, by awful AECO prices. When they did contract to ship gas south, they messed up the basis hedging really badly.
As for the new land, they have no facilities in BC, nor do they have scale. Nor do they have any expertise in BC, or any expertise drilling Montney wells. Many companies have high IRRs drilling AB Montney wells. But Peyto did not. It tells me they lacked expertise, or bought in the wrong area. Or both. I made a prediction that their forays into the Montney or Duvernay, which they also touted as an opportunity, would come up DRY.
I have been watching this team for a long time and studied their history. For almost 25 years, they have not left their comfort zone of targeting ADB Cretaceous zones.
And I would bet a lot of money that in five years they will be drilling the same kind of wells in the same place they do today.
all the best to you!