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Kelt Exploration Ltd T.KEL

Alternate Symbol(s):  KELTF

Kelt Exploration Ltd oil and gas company. The Company is focused on the exploration, development and production of crude oil and natural gas resources in northwestern Alberta and northeastern British Columbia. The Company's assets are comprised of three operating divisions: Wembley/Pipestone in Alberta; Pouce Coupe/Progress/Spirit River in Alberta, and Oak/Flatrock in British Columbia. The Company’s British Columbia assets are operated by Kelt Exploration (LNG) Ltd., a wholly owned subsidiary of the Company.


TSX:KEL - Post by User

Comment by PabloLafortuneon Aug 31, 2024 1:39pm
88 Views
Post# 36204109

RE:CVS Albright Start Comissioning -Next Week

RE:CVS Albright Start Comissioning -Next WeekDry gas is a very tough business. Liquids rich gas is much better because Oil and NGLs diversifies the revenue stream and acts as a natural hedge against low natgas prices.

I ran a few comparisons to confirm:

In Crew's Q2 - they produced 21% condensate, 8% other NGLs and 30,000 boepd or so after bringing 9 wells on line - they recorded field netback of $17.70 ($5.70 to $7.70 after sustaining capex?) despite only realizing $1.31 per Mcf on natural gas. (Dale Schwed ran a good operation it seems.)

ARC claims an all in cost of $1.10/Mcf on Sunrise ($3.90/boe cash costs incl. royalties?) and which has to be the lowest cost dry gas field in Canada.  Even then, the cashflow would only be $1.32 per boe if they realized $1.31/Mcf on their NG like Crew did ($4 of netback). And this super low cost dry gas field is now shut in (wouldn't be if they had hedged specifically for that play).

I took a stab at guesstimating Peyto's netback as well had they realized $1.31 on NG in Q2  and came up with $6 (their fields produce more liquids than you would think). Their sustaining capex is $8-9 per boe.
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