June-July-Aug-Sept = CVS Plant StartupListening to the Annual meeting, we now know another Charlie Lake well came on stream in the wembley area. These wells have a history of initially producing more than 70-73% Liquids, and are highly economical.
It has been a long time to get to this point for Kelt, they CVS gas plant has been in the works for many years. CVS has a good track record of plant operations, i am very familiar with their Plant at Karr, 100% dedicated to POU.
Karr much like Kakwa is a difficult area because of the huge volumes associated with flush production as Karr well pads are completed. CVS plant works many times better than the plant that Keyera operates in the Wapiti area.
The Charlie Lake wells juice the liquids ratio, and allow better production because they do not need as much associated gas production.
So this quarter we should see the more of the impact of bring on 25 MMcf in Wembley in December. We should also find out if the under performing gas plant servicing Wembley has been remedied (6 MMcf?)
In 120 days Kelt will be significantly ramping up it production and cash flow, and with zero debt the big question will be what to do with all their surplus cash flow.
- Pouce Coupe North will be getting more Charlie Lake Wells
- Oak will be ramped up and they are adding processing and have a plan to acquire 90 MMcf of processing capacity there.
Kelt is on a roll, and pretty soon will be rolling in cash.
IMHO