Kelt Exploration Ltd T.KEL

350,000 Net Acres of Montney (kelt and CPG the same)

[MyHoneyPot]

CPG just bid up Montney acreage for Kelt with their purchase of 105,000 net acres for 2.55 billion dollars. 

CPG is on the road now to becoming a Montney Player, and limiting its pursuit of the low volume/reserve wells of Sask. 

CPG through all these recent acquisitions, they are entering the Montney a place where Kelt has been all along. 

2023 was a transformation year for CPG, they decided one day and decided they wanted to be in the Montney.

Sparten Delta 235,000 acres 1.7 Billion  + Hammer Head 105,000 acres 2.55 Billion wam bam they bought them selves into the play by just issusing debt and shares. Leaving CPG with debt of $3.74 billion dollars and a market value of 6.7 billion and a enterprise value of about 10.5 billion.

2024 production is suppose to be 200,000 boe day. 

CPG 2024
200,000 boe/day
3.74 billion debt
10.5 billion enterprise value
350,000 acres of Montney
Total Reserves 16 billion
619 million shares
Share Price $10.60

Kelt 2024
39,000 boe/day                                   (20% cpg Production)
0.0 debt
1.1 Billion Market Cap                         (10.5 % CPG enterprise value)
350,000 acres of Montney                   (same montney acerage)
Total Reserves 4.5 Billion                    (28% CPG reserves)
NVA $22.75
194.6 milion shares
$5.80

Now what seems like better value Kelt or CPG?

IMHO

[PabloLafortune]

Kelt could do a better job though. They really are 2 "Divisions" - light oil (Wembley, Charlie Lake and some Pouce Coupe montney) and natural gas (Oak, Pouce Coupe, other). The profitability of the oil side is much much higher than naturalgas even at $4.50 HH so imagine at $1.50. Its very obvious when you spreadhseett he stuff.  The RLI at Kakwa is only 14.2 years. 14.2 years of

[MyHoneyPot]

I agree the sweetspot is Kakwa/Karr where POU/ARX (Former VII Gen) land position. Going east it just gets more gas as well, going east/south/east more gas.  In fact I would classify Hammer Head/Spartan Delta resouces as tier two in terms of liquids rich montney  compared to POU Karr. However they did put a large land block together for over 4 billion dollars.  Kelts liquid rich