Peyto Exploration & Development Corp T.PEY

Under News Release May 11th

[sportstermathew]

I assume these are farm-in agreements?

For how long?  forever?  temporary?  then they buy them out?

Activity Update Peyto has remained active since the end of the quarter with 5 rigs running which has resulted in 11 wells drilled (62% WI), 13 completed (73% WI) and 9 wells (75% WI) brought onstream. In addition, 8 wells (75% WI) remain drilled but not yet tied in.

Usually everything Peyto does is almost 100% WI.

thoughts?

[Ganga22]

Do you understand what a farm-in agreement is?  Your question tell me that you do not.

[TerribleEng]

They have a lot of acreage where their partners have the option of participating in a well at the time of drilling. For the longest time when gas was a poor investment they punted and Peyto got 100% WI to meet lease requirement. Now it's good and they have lots of interest from partners in chipping in to invest in production. They are started getting interest starting in Q3 if I recall

[Ganga22]

Peyto doen not need anyone participating!  They know what they are doing and do not need hangers on. 

[SecondhandGnus]

PEY mentioned growing acreage less through Alberta land sales and more through farm-in's, especially in Brazeau (see latest company presentation).  D.G. mentioned months back being "surprised" that a partner had opted in to a drilling program--no surprise anymore...