Bill Bonner says Storm Resources (SRX.V) takeout target on BNN.ca
It’s all about the Montney with Storm Resources and the significant upside residing in their under-developed assets. Their lands at Umbach in NE BC are in the heart of industry Montney activity, along with other players such as Progress, Painted Pony, ARC, Shell, Paramount, and Kelt. The region is known to be an over-pressured and liquids-rich natural gas play with multiple zones of opportunity in the Upper, Middle and Lower Montney. Approximately 1/3 of Storm Resources’s land base has been delineated, upon which they estimate 190 horizontal locations for the Upper Montney only. The remainder of their land on trend offsets numerous successful Montney wells. The depth of their prospective drilling inventory, when multiple zones are factored into the analysis, could lead to well over 1,000 additional locations. Admittedly it will take a significant amount of capital to realize the full potential of these assets, some have estimated over $7 billion of incremental unrisked value. Today’s Storm Resources represents management’s 4th iteration of a “Storm” company……hard to believe that the major players in the area would not covet the Storm Resources asset base in a world where LNG flows to Asia! |
