Size - Scale will enhance Sale opportunities. Monetization
Oak, is a big enough Montney play is could be split into two plays if Kelt wanted to. Roughly 192,000 acres this play could be two reasonable sized Montney plays 96,000 Acres is a reall good contigious Montney play.
Wembley/Pipestone is exactly what major companies are looking for with the capital to optimize the infastructure, and with a large contigious land base where they can optimize the drilling approach, and have multiple targets zones. The high liquids ration and significant number of target make Wembley/Pipestone very marketable.
Kelt is capial constrained, but they are spending their budget this year and expect to have a significant increase in production next year.
Kelt growth is not resource limited, it is plant limited, and we will see production growth in pace with the addition of processing capability.
We are not very far away from CVS Albright coming on stream, and a major rerating in terms of CF for Kelt. Addition gas processing will be adding to Kelt in Mid 2025.
Kelt and POU have very similar business models and are of the same mindset.
I am sure David Wilson has other ideas, that are just not ready, or the time might not be right to bring them forward.
Kelt is a very under appreciated and under valued stock. Wembley/Pipestone by itself is worth more than the current market cap of Kelt.
Major companies are looking for the plays that Kelt has, because of their scale. With a change in government the investment enviroment will improve in Canada.
IMHO
MHP