Monday, February 20, 2017

Chinook Energy (CKE.T) to double production in 2017

Chinook website:

(snip)

Chinook’s Board of Directors approved a $40 million capital program for 2017 focusing on the development of liquids-rich natural gas at Birley/Umbach, British Columbia. This capital budget will allow Chinook to drill, complete and tie-in six (4.5 net) wells prior to December 31, 2017 in addition to the three (2.6 net) wells currently being completed and tied-in. 

This capital budget will also fund the expansion of Chinook’s 25 mmcf/d compressor station at Birley/Umbach to 50 mmcf/d. Chinook’s pace of Montney development will continue to be prudently managed to demonstrate growth from its Montney assets while maintaining a strong balance sheet.

Average production in the fourth quarter 2016 was around 3000 boepd. In the recent press release the Chinook Energy management are going to spend $40 million in 2017. The management guidance is to exit 2017 with production running at 6000 boepd. That would be a 100% increase in production. If this occurs than the share price should revalue higher.


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