RE:RE:RE:Kelt Wembley 50% more Liquids, 3.6 times the resource baseWhat Kelt is doing at Oak makes no sense unless the plan is to sell it. For them, Wembley economics >> Oak at normal commodity prices, and >>>>>> at current prices.
Perhaps for someone else, Oak may have better economics than what they currently have or they need the potential capacity.
Of course, it might be better to wait until natural gas prices have recovered some before unloading Oak. Show some good results, raise production. There is a huge opportunity cost of doing that though unless you're pretty sure you can sell it for a fair price.
But then, they don't have their own plant at Oak and are making additional 3rd party plant commitments there. It was my impression that potential buyers would want to own their own plant....
For me, a small company like Kelt should not be doing that. They should focus entirely - subject to ...- on their higher return on investment - Wembley - and turn their attention to Oak later on and if and only if in the meantime they don't find something else that is more attractive. Especially that they have no expertise marketing natural gas (an absolute must) and don't operate their own plant(s).
Good luck to us - they're either way smarter than I give them credit for. Or they're not. If they're not, hopefully they "fail fast" as they like to say in Silicon Valley (did you know NVDA was originally founded as a media processor company...).