jmr, my estimate is approximately 1,600 boepd pro forma this 2nd Gramma Ridge. I use the estimated IP-30 figure instead of the IP-24h. and I am looking forward to seeing the results from Broadcaster in early September. The Broadcaster well is very close to the West Copperline wells which were very strong wells in Q2.
Not entirely sure what the decline rates are here, but assuming we'd 1300 BOEPD at the last announcement, doesn't it seem reasonable that today we are closer to 1700 BOEPD? I bought 220,000 shares here around the 9-10p mark, and have recently almost doubled my holdings above 20p, sadly (otherwise I'd have been able to buy even more at the current prices!) Once Roxi announce their total find and the share price reacts accordingly, I'm planning on putting at least another GBP250K into Caza, assuming SP <20p as I just don't see exposure to this quality of prospect at such low multiples in any other firm currently traded in Toronto, London or NY. (Having lived in the Permian Basin during the soft oil times, I know how chummy the oilmen are, having been a frequent guest at the Petroleum Club in Midland, and I can only imagine that other oil folk are gently and light-heartedly prodding Mike Ford to get a sense of the price needed to successfully buyout the company - but that's just a guess based on my experience of the West TX good-old-boys approach to oil and gas that I witnessed, I've absolutely no inside knowledge, nor do I claim to have any expertise in the analysis of Oil and Gas firms...)
City broker Cenkos described Gramma Ridge 27 State #2H as a positive result which continued the company’s “run of success”. “With production over 1,300boepd (and nearly 80% oil), the company is generating significant netbacks and we believe this could move the company into profit next year. “With the stacked sands in the Bone Spring play offering multiple opportunities per acre, we see Caza as having substantial upside (more than 300 potential wells) yet to be drilled which could prove transformational.” The analyst points out there are four more wells in the drill schedule for 2014, and as such there are opportunities for a re-rating for the AIM oil stock. He says Caza currently trades at a substantial discount and this is an attractive opportunity for investors seeking exposure to onshore US E&P, and particularly the Bone Spring play. Cenkos rates Caza as a ‘buy’ with a price target of 32p - almost double the current price of 17.5p.
Cheers Orchy.He does have an effect on a share could maybe see this moving now when more people have a chance to read his thoughts
if i remember correctly malcy has a target on rrl of 5p... 50p is what he said they could eventually be worth i.e many many years down the line if they finally got trinidad sorted... i think with CAZA 50p isn't an unrealistic target, we're valued very very low per boepd compared to others...
RE: Defies logic
If you contact the company you can get more details about the 3D seismic data they own in Gulf Coast. If you have any idea about the million $$$ cost for a 3D seismic analysis, you can make a guess after seeing Caza's properties in Gulf Coast. However, the company might give you more details if you contact them. In short, they can raise enough money ONLY from the non-core properties which are NOT gas-weighted. They are 50%-50%.
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.