RE:RE:RE:why the big slide?There's a guy on twitter - WTIrealist - gave a very interesting expose of Encana's prolific dry gas wells.
Basically prices north of $4/MMBTU will attract a lot of additional production from the likes of Encana.
If on top of that your costs are higher, your upside is going to be really limited.
Plus Kelt doesn't hedge so its feast or famine too esp here in Canada.
Moreover, the associated gas produced by drilling for oil (Wembley and Charlie Lake) costs less is because there's no capex associated with that production (costs are borne by the oil side).
And last but not least, when you have limited capital, every capital expenditure has an associated opportunity cost. You drill for gas means you're drilling less for oil.
PS - E&Ps often claim all their plays are good when in reality some plays work well at any price while others need favourable pricing to make a buck.