RE:Kelt's Oak Dilemma (amateur hour)Oak might be perplexing to us, but the way i look at it is this.
INGA was a great play and they sold it at the bottom of the market for 530 million when there was a commodity crash.
I know the company that bough INGA and their view of the asset and it was a major and they had a long term view for the asset, they were not looking at short term gas prices.
OAK is one township over from INGA and a lot bigger, although they may have only a few wells they have extensive knowledge regarding exploiting the Montney in that region of NE BC.
So its easy to make a black + white assessment of the property, but they have experience exploring, developing and monetizing a very similar property successfully. People looking at that resouce is not looking at short term gas prices, just like TOU when they bought the crew assets and will put them on maintenance capex for a number of years.
Oak is a huge contigious resouce, and lot of the NE BC stuff is not that large, or contigious, look at sunrise that ARX shut in, why did they shut it in, because it was 100% dry and they had no hedges to support it is my guess.
Oak is a longer term opportunity that will have its day, but that is not right now.
MHP
IMHO