Is a Paradigm shift happening?
Many dry gas project have seen the brakes applied to them, and really can you do full cycle economics on bone dry gas? because once you start loosing money, there are no economics that make sense.
Especially if the outcome is that you have to lock in production, shelve future plant expansions, sell your company, change drilling plans, all because of uncertain economics, and a questionable balance sheet. (cr, aav, arx, pou, kel)
It does take years to bring on a significant new Liquids Rich resouce, and a lot of good fortune in the timing of the startup and market conditions.
Wembley/Pipestone has been waiting for years for signifcant Plant capacity that will allow this oil rich play to be brought to production. A cost effective approach of Field Batteries removing the majority of the liquids and optimally using plant capacity is Kelts infastructure design.
Really its not good for Alberta/Province to have these low gas prices and the produciton of dry gas without associated Liquids. Really low value BOE's for the province.
In areas like Liard and Horn River they are decades of dry gas that are close to export facilities that will one day likely fill those tankers.
Really it seems like the criteria for rating the quality of futures plays is very much in Kelts favor, and the idea of producing dry gas is becoming significantly less attractive.
It is just a matter of time now until we hear that CVS Albright plant is operational and we get the results from some of the first pads drilled in Wembely/Pipestone.
Kelt is getting more attention now than ever before. This pull on price is temporary (My opinion), and another buying opportunity for Kelt.
MHP
IMHO