Kelt Exploration Ltd T.KEL

Sell Pouce Coupe?

[CashFlowADay]

Sell Pouce Coupe?  

 

Would fetch between 500-1B.  The entire company is worth $1B. 

 

Buy Spirit River for 200m.

 

Focus on the future, reduce shares by 30%.

 

Oak is planning 13 wells in 2022.  Despite Blueberry issues, production is starting.  If Pouce Coupe is sold to close end of 2023.  Wembley, Charlie and Oak will be much more developed (around 20k bpd between the 3) and the high quality company can move forward with their EV in Cash. 

 

Just playing around but thoughts?

[fauxtomato]

$500M for Pouce Coupe? How are you arriving at that? I agree that the sum of their parts is worth much more than current EV of $1B and that another major transction to bring forward some of that value is likely. Once there is some resolution on the BC permitting side I can see a sale of something in AB to fund more rapid development of Oak. 

[PabloLafortune]

I like the Pouce Coupe sale too - the gas portion has been great ROI for sure but Kelt struggles to market natural gas - what they've been doing seems very ad hoc. Plus if they add pentane+/conde to oil sales like everybody else instead of burying it in NGLs, and Pouce Coupe gas is gone, we have an oil mix that is bang on NVA's and should go higher over time.  In any event,