RE:RE:46.4 MMcf Day - Second Quarter Wembley/PipestoneReally they never have realized the 25 MMcf of Gas Plant production in Q4 - 2023 because of plant issues.
Wembley/Pipestone has under performed,and they have added a lot of reserves there with limited production gains.
Its pretty hard to fault them on Oak a Liquids Rich gas play, when you don't know the terms of the agreements there.
The other gas wells are postponed, looking for better pricing.
Charlie Lake Wells at Spirit river will be a big economic boost that will be realized in the 4th quarter, and the full impact in 2025.
Also with the battery finished at North Pouce Coupe, you are going to see a lot more Charlie Lake wells up there as well. The establish a new play area there.
Oak is really their only gassy play, the other gas wells are more opportunistic, when gas prices dictate otherwise they will not bring them on, in fact i remember Kelt shutting in gas when the prices were low.
They maintained the balance sheet, they worked though infastructure outages, they built a new battery and will be opening up a new core area, six charlie lake wells at Spirt river, and will have a ton of production reserves behing Wembley/Pipestone, 2025 NAV will increase, and 2025 will be a big year.
I have been early in many of these startup resouce developments and they are all the same lumpy, but what different here is that kelt has built a lot of field infastrucutre so i expect once these plants stablize, they have a much better operating enviroment, and i think their OP costs will be lower.
MHP
IMHO