Post by
kavern23 on Nov 01, 2023 10:38pm
Whitecap Model
My guess is PNE is going to pivot towards the "whitecap model" on the certus assets.
What Whitecap does is they buy into a high quality oil and gas play...they then use CF from legacy mature assets to fund a 3-5 well drilling program in this new play with the expectation well results are so good revenue wise, that a drilling program can be sustained on CF from the flush production of the 3-5 wells. Play becomes self funding.
This is why Whitecap has become so sucessful.
Whitecap got those glaucy locations in garrington from i think buying timerrock. Whitecap is hiting such good wells that play is for sure self funding and Whitecap doesnt have to sink any new capital in.
But it is hard to do as you need the wells to be really good.
Comment by
Scotchlight1001 on Nov 03, 2023 7:53pm
Did step out. It was amazing on how fast my shares were snapped up one day before the news came out. I thank PNE for making me money on 2 occasions but the evaluations on large cap blue chips were too compelling during tax loss selling to pass up. GLTA.
Comment by
Maxmoe on Nov 02, 2023 10:21am
"This is why Whitecap has become so sucessful." Huh? Stock price is my yardstick. WCP got through $10 per share nearly 2 years ago. Since then, nothin. Zzzzz. Pne hasn't been much better but it at least has the upside leverage to natgas prices. Unless the debt forces a hedging program that caps that. Booooo!