Charlie Lake - Made a lot of senseKelt did a tremondous job in terms of putting together a very prospective portfolio of Liquids rich land, and protecting the balance sheet while at the same time establishing meaningful reserves.
Lets be honest about things, it has been the Charlie Lake play that has funded everything at Kelt, to this point in time.
Now with Wembley/Pipestone coming on, a new economic opportunity is in front of Kelt in the development of these properties, they could be better funded by a Major Player.
So with the objective of Creating Value, i think Kelt is checking all the boxes, low share count, low debt, high netbacks, and good reserves, and one of my check boxes is in the Montney.
Wembley is going to be making major cash contributions going forward.
Kelt will have the cash to exploit this large resource base however they want.
Think about Crew selling, should crew of drilled any wells in 2024? likely not....
However if they sat on their hands they would never of sold the company.
MHP
IMHO