POU to buy Wembley/Pipestone? Its a Possibility
POU will be sitting with over 3 billion in Cash and a billion dollar bankline undrawn. (4 billion dry powder)
Wembley/Pipestone is an asset that is right up the alley for them, i could see them buy it, ramp it up to 80,000 boe day. Then sell it off to a major.
I like the acquisiton of POU (Karr, Wapiti) for 3.325 billion, plus some Horn river land, and reduction in ARO obligations. (4 billion?)
Assets were approximately 67,600 Boe/d (50% liquids)
Wembley/Pipestone is a very clean asset producting from two zones, and with Charlie Lake icing on the cake. Very valueable asset.
Kelt should be a rerating here, the CVS Albright plant cound not startup fast enough.
I think Kelt has done a great job with limited capital to get the asset to a place where it is acctually recognized for its potential, and proven it will the last well pad results.
IMHO
MHP