Wembley/Pipestone is under ValuedNVA Postage stamp Pipestone Play -Link NVA pipeston play, 35000 acres, is currently producing 45,000 boe a day with a production target of 62,000 boe a day.
NVA Pipestone Projection Link So Kelt Pipestone is roughly 3 times as large a NVA 35,000 acres of Pipestone montney they paid 625,000 dollars for.
Kelts Pipestone is a higher percentage of liquids and that is oil liquids. 59-62%
Kelts Wembely/Pipestone Charlie Lake is add 16,134 of Charlie Lake 70% oil to the equation, or a land base, essentially 46% the size of NVA Pipestone.
I like the idea of Kelt selling off 35,000 acres of Wembley/Pipestone with 9,700 boe of production for 625,000 dollars leaving Kelt with roughly 80,000 acre Pipeston play and the associated charlie lake.
If NVA has a production target of 62,000 boe/day for 35,000 acres of for 20, what would Wembley/Pipestone be with 3 times the montney land mass plus 16,134 acres of Charlie Lake.
NVA likely thinks Pipestone was a great deal and it quickly ramped up to be about 50% of their current production, so do you think they would say they over paid at 625,000 dollars for 35,000 acres?
Kelt is to cheap and should be trading significantly higher in my opinion.
MHP
IMHO