Kelt Exploration Ltd T.KEL

Charlie Lake what are the Economics Like

[MyHoneyPot]

Interestingly, Tamarack Valley calls this play the “lowest breakeven play in North America” in their corporate presentation (pg.11), citing data from Peters & Co.

Kelt with Top Charilie Lake Wells

DOB Charlie lake it the Place to Be... (Link)

IMHO

[PabloLafortune]

Tamarack's operating costs are $9, that is very low for 80% liquids so Charlie Lake being a low cost play is believable (why I do not know). With natgas prices cratering for the past 6 months, and oil being so volatile, it probably behooves you to turn on a dime, stop drilling gas wells incl. Oak and drill low cost oil wells ie Charlie Lake instead. Doesn't do much for end of year reserves

[MyHoneyPot]

The Charlie Lake formation is multizone and is above the Montney, so in the Wembley Pipestone area everytime they drill a montney well they get a look at the Charlie Lake zone. In the Pipestone area there is a lot of Charlie Lake but their current Charlie Lake focus is in the Spirit River area. It is likely because of plant constraints is my thinking.  Wembley/Pipestone has a good Charlie

[PabloLafortune]

Thanks yeah, that explains a lot. Obviously if Wembley Pipestone is constrained, it goes without saying that Charlie Lake wells in the same area will be as well.   Also really appreciate your posts on TVE. I had obviously not done my homework on the balance sheet.  How the heck does a company with so much liquids generate so little FCF?  As if that wasn't bad bad enough add