PAINTED PONY PETROLEUM
In this business, timing is everything. In July 2014, Painted Pony’s timing couldn’t have been better as it unloaded all of its remaining oil assets for $100 million right at the peak of the market. That cash gave Painted Pony a completely clean balance sheet with which to navigate the past couple of tough years.
Painted Pony is another young entrepreneurial company that has done some eye-popping things in a very short period. From 2008 through 2017, Painted Pony is expected to grow production by 5,945 percent. That’s quite a contrast from oil and gas majors that have struggled to grow production at all.
Like others on this list, it is the Montney natural gas that is driving Painted Pony. It has assembled a massive piece of prime real estate in the northeast B.C. Montney. We are talking about 217 net sections of land—139,049 net acres—surrounded by logical Painted Pony suitors and LNG players Petronas and Shell.
Having the foresight to lock down this terrific acreage was part one of this success story. Step two is becoming very, very good at getting hydrocarbons out of the stacked formations that are found on the property. As recently as 2014, Painted Pony was seeing initial production in the first 30 days of 5.5 Mcf/d, and exit production rates after one year for these wells have been coming in at 2.6 Mcf/d. The most recent generation of wells have seen those numbers increase to 9 Mcf/d and 6 Mcf/d, respectively.
At recent strip pricing, Painted Pony believes it can generate IRRs of 136 percent. Eventually, Painted Pony’s assets are going to make the company an acquisition target for one of the world’s largest oil and gas companies. One can only imagine, given its historical rate of growth, how much Painted Pony might be producing by the time that happens.
PAINTED PONY CEO PATRICK WARD