GMP Securities recently put together a fascinating spreadsheet of Canadian oil play economics, displaying the economics of each oil play for each public company, listing 121 total plays.
The top 11 plays are the following:
|Company||Play Types||Well Cost||Well NPV||Well NPV/Well Cost||Payout (MOS)|
|Twin Butte||SK Low Viscosity||$615||$1,346||219%||14|
|RMP||Ante Ck Mtny||$3,800||$8,165||215%||5|
|Marquee||Lloydminster Hvy Oil||$605||$1,068||176%||10|
|Crew||CR Princess Vt||$800||$1,347||168%||6|
|Tourmaline||Deep Basin Hz||$5,500||$9,203||167%||7|
|Tamarack||Sk Heavy Oil||$700||$1,146||164%||11|
|Renegade||SE Sk Mississippian||$1,200||$1,955||163%||22|
|DeeThree||AB Bakken (HZ)||$3,450||$5,562||161%||7|
This list is a "who's who" of emerging and mid-cap oil producers in Canada, including premier companies like Paramount (OTCPK:PRMRF), Tourmaline (OTCPK:TRMLF) and Trilogy (OTCPK:TETZF), and rapidly growing companies like DeeThree (DTHRF.PK), RMP (OTCPK:OEXFF) and Strategic (OTCPK:SOGFF).
One other interesting data point - on "average" the 121 plays are quite exceptional:
This chart and analysis is helpful in forecasting the impact to Austex Oil (OTCQX:ATXDY) of up-listing to the TSX-V. Austex's vertical Mississippian wells cost $700k and generate NPVs of $1.2 million, and pay out in less than a year. Austex's economics would be in the top 10 of these 121 Canadian plays.
This is relevant because the other small, rapidly companies in the top 11 - Deethree, RMP and Strategic, have outperformed, particularly RMP and Strategic.
As Austex up-lists to the TSX stock exchange, perhaps it will "catch up" with some of this outperformance, as its wells are comparable to wells drilled by these other high performing, Canadian traded small-cap oil companies, and they are growing at a similar rapid rate.
Disclosure: I am long OTCQX:ATXDY. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: Permission was granted by GMP to use this analysis in presentations