Kelt Exploration Ltd T.KEL

Sleeper play

[Oldnagger]

As the fundamentals on Canadian nat gas improve, and crude looks very promising ; there has been no reaction at all in the Share price
This is a company that has the ability to print money faster than any one that could make our PM salivate.

PS keep this quiet as we don't want the news to get out !!

[gossamer15]

This post has been removed in accordance with Community Policy

[gossamer16]

This post has been removed in accordance with Community Policy

[PabloLafortune]

I'm encouraged by this am's NG storage report. While we're at last year's level, weather in the east has been very mild to date - much colder now; that LNG plant hasn't re-started yet; and storage is not balanced (East low; SW high). did Kelt add some Dawn in latest presentation?

[PabloLafortune]

Also, there is a very good article today on natural gas intel in which they interview ovintiv ceo on natural gas marketing. Basically, 85% they either sell outside aeco or have basis deals in place. the lack of either or cost Kelt big time this year and may again in 2023. This could be the main reason for share price lag imo.

[Oldnagger]

The market has completely ignored the fact that petroleum product demand rises in the winter. Hence Crude demand will follow, yet Crude supply is severely constrained and not likely to grow very fast (particularly with deteriorating pricing ) Strength in Nat gas and the upcoming return of Freeport is another plus. Hopefully Kelt will find an opportunity either to make basis hedges or outright

[Seppelt]

Talking about next years AECO maintenance season, let's hope TC will finally commission the 2021 NGTL expansion project and this will put an end to negative summer pricing. Originally scheduled for Q2 2021 the project was delayed due to Covid resulting in late approval by the federal government. Re-scheduled to Q3 2022, the TC web site now says Q3 2023. Browsing the internet for project

[Seppelt]

Station 2, which has also suffered from low prices this season which only recently recovered, is also important for Kelt. The co is planning to drill 12 and complete 13 wells in BC in 2023. My understanding is that these plans are based on the approval by the BC government, including applicable tax incentives. That is despite the controversial Blueberry River court decision.

[PabloLafortune]

Hope is not a strategy. The cashflow in 2023 should exceed the capex by quite a bit which should allow them to opportunistically secure more NG diversification or basis. (Oil is more of a short term thing, I could see 50% for 3-6 months.) And if AECO goes haywire again they can just shut wells down (as producer debt goes down, more of them will shut production down and the power will revert to