CPG Q1

The results are in line with expectation, the details are available in the release. Based on present metrics the stock is very expensive. In fact it is at the moment the most expensive producer among Canadian intermediates and independents with a clear margin. But it has a light/medium oil property portfolio that is unique both in quality and scale, a management that can deliver and then there is the waterflood. This was the first earnings release in which management has mentioned the wf in detail, so the management's confidence in the effectiveness of the tech has grown.

The geology of the Bakken varies greatly in Saskatchewan(more than it does in North Dakota) so the big question is how extensively can the flood be applied (successfully). The first pilot is at the core of the Canadian Bakken sweetpot Viewfield and it seems likely that the wf will be effective only at similar locations where the geology is more permissible. One of the pilot areas is circled in red on the Viewfield map.
Even if the flood would only work in the Viewfield core the incremental reserves would probably be measured in hundreds of millions of barrels.





An interesting detail related to Ryland Oil in the report is that CPG intends to double the number of wells that will be drilled in the Flat Lake area this year.