Kelt knows the value of Wembley Pipestone
The Wembley-Pipestone play is now pretty well fully deliniated, so this means that Kelt is very close to it primary objective set out for this play, which is its monetization.
What has slowed things down for kelt is that they are restricted in plant capacity. Not all companies have the balance sheet to purchase Wembley for a billion, and not have associated Funds Flow to support the purchase price and no way to bring production on quickly.
Pipestone is still in the early days with respect to bringing on of production.
So lets clearly understand the objective for Wembley has alway been to sell it, and it has a FOR SALE sign plastered on the name plate of the project.
The reality is that some times there needs to be enough production to support the price, and help finance the deal. So every plant addition, is a milestone moving Pipestone closer to a sale, it may be sold now for X dollars, sold at year end 2023 for 1.5X because of 7,000 boe/day. Then if you wait until end of 2024 and they add 15,000 more boe/day you will be paying 2X.
So Kelt is entering the harvest phase for Pipestone, and it will be just a matter of time until someone will come along and buy this company making play.
Kelt is to cheap and they are going to do this a few more times over the next few years with the assets in the company has currently, under 5 dollars KELT is one of the cheapest company in the planet.
IMHO