1 Billion Capital Pools - Is Kelt Ready to trigger an Event?Well all the focus has been on Wembley/Pipestone and this year they drilled their first PADS, and moved into development mode, with more gas processing and more production wembley/pipe will be generating significant amounts of cash.
Pouce Coupe
However we should not overlook Pouce Coupe and the addition of the new play area Pouce Coupe North, with the drilling of 7 Charlie Lake wells at Spirit River, and 3 Charlie Lake wells at Pouce Coupe North, and drilling the DUCS to opportunisticly exploit some high deliverable gas at the right time.
In 2024 Kelt is going to show progress at all their play areas with a very modest increase in debt and setting up 2025 to be a banner year.
The Pouce Coupe Area is heating up, and advantage just bought in big in a deal that Eric Nuttal did not like and sold all his shares, and is upset with the company. Charlie lake is turning out to be a very prolific play area with great economics.
OAK is in the early days, Pouce Coupe is a little more develop and has been the cash cow of the company, but Wembley Pipestone is the developing prize.
It looks to me that monetization of the Pouce Coupe area may be possible and in the cards when Wembley/Pipestone gets enough production on stream.
I am not sure how big Kelt wants to grow the company, I think some key measure to watch are the size of the capital pools, the debt levels, and whether the market is positioned for the sale of a division.
POUCE Coupe could be the next sale, it appear it is well positioned for that, however it may not be the right time yet....
Better than getting dividends
Better than Share Buybacks
Return of Capital to shareholders in a tax efficient manner what a great strategy...
IMHO