Post by
MyHoneyPot on Apr 18, 2023 9:35am
Where are we?
Kelt is now in the exploitation phase with Charlie Lake, and Pipestone/Wembley.
Both of these these plays are liquids rich, Charlie Lake has oil wells have delivered over 900 boe/day. Kelt has optionality, they also have gas that is ready to bring on when the price is right but with the huge overhang in gas storage this is not the time for gas exploration.
26 wells in 2023 will potentially allow them to average 34,000 boe for the year. WTI is a bit over forecast, they might be able to drill one or two extra wells this year. Also the Charlie Lake wells, are doing a little better than type curve of 388 boe/day. I think that understates the results they are getting from the charlie lake. Two of the wells was in the top 15 wells in the province and produced 953 boe/day and another well 862 boe/day for the month of November.
Kelt will have a huge year in 2024, and will be way more active, with way more wells and cashflow will likely be up over 30% in 2024 based on volumes.
Kelt is now at a critical point where the production is going to surge, and so will the cash flow.
Every one of their plays is Tier1, and i would not be surprized if there is some small divesture in 2023, because they got their hand full in 2024 with Pipestone, and another 50 Mmcf coming on at the end of 2024.
In 2022 kelt grew 30%, in 2023 they will likely grow 25%, in 2024 i can see them growing 30%
They will do this all within cashflow, and essentially zero debt.
This is a great opportunity for shareholders, all the planets are lining up.
IMHO