Kelt Exploration Ltd T.KEL

Pipestone Gas Plant & Tidewater Asset Review

[longrun86]

Hi folks,

I don't post on the Kelt board very often but always enjoy following. I have been a shareholder on and off with David and the gang since the Celtic days.

Kelt currently owns about 20% of the Pipestone Gas Plant. Tidewater Midstream appears to be going through a strategic review process and I am of the belief that the Pipestone Gas Plant will find itself in a stronger set of hands with deeper pockets which means a potentially beneficial solution for Kelt.

I am wondering if others on this board share my view regarding the Pipestone Gas Plant and the potential value lift to Kelt from having a stronger partner in the area? I'd also be curious as to who everyone thinks the potential new parties might be.

Appreciate your thoughts

LR

[PabloLafortune]

Makes sense that they would do that. They've only contracted for 30,000 boepd @ Wembley.  They have 107,000 acres almost fully delineated; plus 37 sections of Charlie Lake in the area. The money is in oil, natgas processing is almost a necessary ..... Pricing is set by in the US. we can all see how plentiful natgas is even though prices are so low. and they could produce much more. LNG

[Oldnagger]

One should never wear bifocals when looking at nat gas. The transition to much higher prices is already underway. I still believe that nat gas producers will out weigh their oilier cousins. Otherwise why drill for the stuff ?? 

[PabloLafortune]

Short term (3-6 mo), I'm more bulilsh on natgas than oil. Long term (5-10+ years), I'm more bullish on natgas than oil. But medium term - 6 mo to 5-10 years, I prefer oil than natgas. Grosso modo amateur hour.  I'm not generalizing to every producer when I express my opinion on oil vs gas, I'm only referring to Kelt's particular situation.