Danielle SmithRex...remember during last election when Danielle Smith government floated the Rstar program?
Do you know what the likely reason for that was? even thought lots of the public doesnt want the program. I actuallly thought it is an amazingly brillant idea.
What that program would have done is encouraged CNQ and Encana to reclaim their old southern alberta ng fields faster as they could get royalty credits on new drilling by the more they reclaim.
Lots of people dont know this, but Encana is stuck with some old fields.
It would give CNQ and Encana and the rest an incentive to reclaim instead of just paying property taxes and surface rental payments and run these wells. Cheaper for CNQ to pay a farmer 3-4k a year then reclaim some wells.
And it would give the drilling sector a lift in Alberta as the big companies have extra incentive to drill.
I think poltically a rstar program cant be floated until commodity prices are lower and the industry needs more stimulation.
This is another benefit for PNE to have Cetrus type locations as PNE was not designed to take advantage of a rstar program as what can PNE drill