Mmmm.. Actually that's not what Dave is saying and, Dave, I am also not complaining :-).
It's just a comparison I found, so I am just showing it.
I have used it as a base to value my top current pick: RMP.
PB-CEO: I am not sure what would anyone find normal and that's hard to define when values differ so grotesquely.
Average IRR @ $ 50 WTI:
Montney: 38% -130%
What I can compare rationally is IRR vs Acreage cost.
RMP's Gold Creek has an IRR of 199% @ US $ 50 WTI - A producing Waskahigan (95% IRR) and Kaybob properties for which you currently pay ~$ 750 per acre.
If $ 2.500 - $ 4.000 per acre is normal vs $US 27.500- $US 50.000 for the permian, there seems to be 2 clear conclusions that can be made (also taking the Montney article into account):
- Given the Montney IRR there seems to be upside to that $ acreage number for the higher IRR plays in the Montney
- RMP's $ 750 per acre with producing properties in all key 3 area's seems abnormally low