Kelt has a big picture perspectiveKelts objective is not to buy small blocks of land, prove them up and they try expansion of the play footprint, if Kelt tries to expand the play area after you have acheived good produciton results (Good Luck, its a competative landscape)
Companies that are developing pay areas on a small footprint basis, the market ends up bidding up the land around you, and its will not be available or you can buy it for a resonable price extensions to your land base.
How many of the shale players really have large resouce style play areas? Look at ARX sunrise 25 section of land, or NVA wembley 35,000 acres, or POU karr/wapiti together they are only 110,000 acres and they have been work on these projects for multiple years.
Wembley at 115,000 acres is a company by itself, so it is of interest to majors and comes without the people or business liability, should simply buying a well deliniated tier #1 resource.
Kelt has done a great job of putting meaningful land positions together that create significant value, like Charlie lake which on after they have started drilling to the realize the estimates were low regarding the potential. The same goes for OAK and as they drill new wells the production is exceeding the reviewed type curves of 2022 establish by reserve reviews.
Kelt has the plays all the majors want (Size + Scale), and all the mid cap and juniors really don't have and want as well. Kelts Prospects could be stand alone companies, so someone with a small amount of development Capital could buy wembley and they would have the resouce, production, and lands for twenty years of production of a 60,000 boe/day company.
Kelt is a gem in an industry hungry for meaningful plays, with a short timeframe to find the resources. Buying wembley for 1-1.5 billion is not a big deal for a resouce that will produce 60,000 boe day for 20 plus years.
Most companies are built on postage stamp play areas, and constantly cycling money that destroy shareholder capital. Kelt is really focused on creating share holder value and it the basis of the companies compensation framework.
Cheapest stock in the market place.
IMHO