Hey guys,
Hope all is well :).
I've been doing a little bit more digging and frankly this Montney area is an absolute goldmine. I've read a lot of articles stating that this is one of the biggest shale plays in North American but it seems to be very new to investors and a lot of people don't know about it. I know that many of our bigger companies such as Encana and Talisman are in the area.
Here is a good article among many before I forget:
http://www.energyandcapital.com/articles/montney-shale-formation/1072
When I talked to Questerre they said they aren't allowed to disclose the main operator but I am going to assume a company that knows what they are doing.
As stated in the new report:
Questerre holds a 37.5% interest in this well before payout and a 25% interest in this well after payout. The Company also holds a 25% working interest in 16 contiguous sections (10,240 acres) of land offsetting this well.
Look at the first well results. 1150 bbls/d liquids and 8.3 mmcf/d on gas. I mean that is absolutely ridiculous. The liquids of the play make this very profitable and the nat gas numbers are no slouch either.
I did some research and looked for other results and it seems that many other jr's and bigger players are getting similar results, some with 16 mmcf/d with 500 bbls/d liquids etc. It seems the area is producing and giving amazing production. Just do a quick search in google and that will give you an idea.
My main point is that I hope the company realizes this and attacks it. I know they have another well already being drilled and they are also not the operator so they are the mercy of them. On a side note, QEC said they own 10,240 acres that are contiguous, so meaning very close by. I wonder if they have any partners in the area on that or if not, could they go at it alone. I know they are trying to save capital so the partnet idea works for them.
This area is definitely something that has caught my eye and I'm hoping the company really pushed hard here.
In this news report:
http://www.questerre.com/en/newsroom/press-releases/2012/questerre-spuds-second-montney-well/
They mention that, with the partners, to be building another processing plant for the new wells so it seems that their interest has been peaked.
If you guys have anything to add, please do so as I'm excited about this area.
Take care,
Rocco :)
