Debt ReductionSignificant head way has been made on reducing debt. At the current level of debt the Regulator should approve the asset transfers from Shell to PEA. Holding title to the assets creates the ability to get more favourable financing terms. With the added bonus of drilling success and PEA owning the infrastructure creates additional upside and options to generate Joint Venture opportunities and off balance sheet financing. What’s especially attractive is the relative short time from spud to on stream and no facility constraint.
I suspect management is actively pursing various financing options as well options for production growth. The start up of the Coastal Gas Link in 2025 Is a game changer for western Canada gas producers.