Drilling is what BLVN is all about £100millon in the bank confirms that and with its shares currently trading on a price to book ratio of just 0.22, it appears to offer a wide margin of safety and considerable capital gain potential.
So looking forward, BLVN has announced the completion of drilling in the Zingana exploration and reported that it has found hydrocarbons in the reservoirs that were targeted. This is highly encouraging and further positive news flow could lie ahead, with BowLeven set to commence drilling on the second well in the programme.
The Etinde asset still catches my eye not least that there is there still up to $40m in further contingent payments and carried appraisal wells and they are still fully funded for its share of Etinde costs, with capital to spare for judicious exploration/appraisal.
Value is hard to gauge with the like of Edison going for 74p a share. In this market I think 45p a share is a fairer reflection but that is still some 73% uplift. The downside - risk and exploration go hand in hand, but given the financial position BLVN find themselves (market cap lower than cash in bank) it is hard to see downside at current share price level.
Money in the bank........ tick Drilling programme started.......tick First drill completed.........tick First drill capped and stored........tick Second drill started........tick Share price dropping.........tick Does anyone out there not see what is happening? It's your money
As a long term PI in VOG Have been waiting for opportunity to get some of these cheap. Just missed the bottom but happy at 26.9 ish. The way I see it, If they find oil, I'm in profit, if they find gas, my VOG shares rise on a JV already hinted strongly at by Kevin Foo of VOG. Win win. Unless of course they find WATER.!!!!!!!!!!
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