ARC Resources Ltd T.ARX

Meaningful Update regarding Kakwa - Is it Possible?

[MyHoneyPot]

Investors in the know understand the issues and costs associated with Kakwa, this is a high stakes exploration play. The decline were an issue for a number of years in this play area. 

Management now needs to communicate how they have mitigated the risk, and that now with improved economics exhibited in the play they are ramping up to a more normal level of  production. (225,000 - 240,000 boe/day)

Kakwa uncertainity is the overhead on the ARX stock, and the CEO reinforced this on his first video as a big concern. Terry needs to tell the markets he has delt with the concerns and Kakwa will be ramping up to a more normal production level. He addressed the declines with wider well spacing and he has acheived his 2% decline objective. 

Also IR should communicate to the market that the best play in the Montney just got better with 12% cost reductions in drilling and completions. 

So publishing real well results, type curves and play economics in a properly formated power point on the corporate presentation would likely add 5 dollars to the share price, pretty quick. 

Kakwa is 70% of ARX cash flow and as confidence in the Kakwa play increases so will ArX share price. 

IMHO

[GunnerG]

Must you come back every three hours and make the same statement four times today? What you have to say may be true but OMG let up a bit.