Kelt Exploration Ltd T.KEL

Oil & Gas Reserves development

[PabloLafortune]

Company is what Kelt is. That's the primary objective. The idea being to sell their plays eventually.  Production is a means to pay for development and necessary to prove out the reserves. For example, Wembley 2P RLI was 60+ years as of 12/31/23.

Everything they do has to be understood in that context.

They have no interest to buy back shares, pay a dividend, build their own plants etc... because all those things detract from their main goal.

The quarterly reports don't matter much either.  What matters is the annual reserves report.

Also why they don't focus capex instead choosing to allocate capex more or less equally within reason.  They almost don't consider commodity prices in allocating capex unless said commodity generates more cashflow to advance development.

Also why they don't hedge much. Worst case they'll shut capex and ride it out IMO. They don't borrow
 Much because of what happened with Inga.

Took me 5 years to figure this out.

[MyHoneyPot]

I am good with that !! Keep it simple..... IMHO MHP

[PabloLafortune]

Yeah if you're not good with that you shouldn't own this. I'm not sure I would buy again 4-5 yrs ago knowing this but now that the end of the tunnel is getting closer it doesn't seem like a very good idea to give up now.... Also this is helpful not to criticize the company because they are doing exactly what they should be doing. I do think it would increase shareholder

[MyHoneyPot]

Its alway frustrating waiting for paint to dry... However for me i do a lot of trading so a company like kelt is simple to understand, does not have a lot of balance sheet risk and had integrity i believe in the management.  So i do go massively over weight every time there is a sell off, then i will sell a few shares opportunisticly.  My core position is actually pretty large, but i

[Oldnagger]

You are a fast learner , most people never figure it out !!