Post by
Shaleguy on Dec 11, 2021 11:07am
What I'd Do to Sell the Virtues of Kakwa
Firstly I'd invest in some detailed reservoir analysis, more nit picky rather than difficult to show reservoir characteristics and production profiles. I'd show the ultimate recoveries and declines. So what if year one shows a big decline as long as the late life production is steady what's the big deal . Show ultimate recovery. From what I remember nest 2 wells are estimated to produce 900,000 bbls of condensate plus NGls and at least 3 bcf of gas I think this is what MHP is getting at. Then I would hire a US reservoir engineering consultant to compare Kakwa to the Permian. I think we are better but you have to prove. Then this comparison along with the type curves should be front and centre of the presentation. That said, Kakwa is break even at 40 dollars cdn, ok at 50, very good at 60 and stellar thereafter. If you believe Eric Nutall and I give a bull run an even chance of lasting five years then the Arx and Kawkwa is a cash machine. The bottomline is human nature is such that if you don't give all the facts people assume something is wrong.