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Australian shale play to debut despite green energy push as per Reuters.
Tbn to debut June 30.
Planning to raise further funds end 2022 by selling assets based on drilling results .
According to Joel riddle,there has been interest already from INPEX and Total.
These are just some of the 6 outlets for
Beetaloo gas ,east coast and LNG plants etc.
We need to be up there with Santos and tamboran by end 2022 or we will be left behind!
Ss
Cenkos act as Falcons Nomad.. Cenkos was founded in 2004 by a small group of professionals with more than 20 years’ experience each, in funding smaller companies. Cenkos’ founders share a long term commitment to bring together capital and enterprise and to play a role as a leading broker and adviser, fostering growth and shareholder returns. Reflecting on their long experience in the market, Cenkos was set up with a distinct model to address the specific challenges that smaller companies face.
Cenkos was admitted to trading on AIM in 2006, has been profitable every year since inception and has a strong balance sheet. We have offices in London and Edinburgh.
Just curious, who is Centkos? have never heard of them.....can't find the link when i google.
VM, I would ask the same Q, I think that Cenkos's look through valuation is their conceptual valuation of where falcon should be based upon prospective resources in comparison to Tamboran's prospective resources in the Beetaloo... Maybe someone could fill us in on their take on your Q. Its a huge relief to hear some good news from POQ!
Tamboran’s key focus is to de-risk the substantial resources identified within its highly prospective acreage in the Beetaloo Sub-basin. Tamboran’s assets include EP 136, EP 143, EP 161 and EP(A) 197. An independent reserves and resource certifier has given a best estimate that the net prospective resources in EP 161 and EP 136 total approximately 31 Tcf. The Beetaloo/McArthur Basin is one of the most active E&P areas in Australia, with significant appraisal and investment anticipated to occur in the new 18 months.
Can anyone explain the following parts of the Cenkos report.
First part:
Fundamentally Undervalued: Comparing Falcon to its contingent resource weighted peers:
It is easy to see why we believe Falcon is fundamentally undervalued.
Table 1: EV/2C Valuations
Company 2C Resources (mmboe) EV (US$m) EV/2C
Falcon Oil 243 67.6 0.3
Beetaloo Peer 37 143.7 3.9
North American Peer 77 268.0 3.3
Gas Focussed Peer 61 20.9 0.2
AIM Average 1.3
Second part:
Additionally, we note that Tamboran resources is due to list on the ASX on June 23, 2021, with a market cap of cA$260m (cUS$196m), the "look through valuation" for Falcon would be 14.2p per share., C2,4x the current share price.
Here is a cut and paste from today's excellent Cenkos report. There is more detail available for anyone that goes onto the Cenkos website and requests access by giving Cenkos an email that they can send you a login access directly.
Falcon Oil & Gas has announced the commencement of the Company’s
2021 work programme, starting with the resumption of clean-up
operations at the Kyalla 117 well. The planned 2021 work programme will
include multiple workstreams across three different plays in the
Beetaloo, providing a near constant stream of news flow for investors. In
addition to Falcon’s comprehensive 2021 work programme, activity is
expected to increase significantly across the rest of the Beetaloo, with the
drilling of up to three new horizontal wells.
The results of the 2021 work programme will help determine the future appraisal
and development programme, which subject to a successful 2021 campaign could
include a second horizontal well targeting the Kyalla liquids rich gas play and a
second horizontal well targeting the Velkerri dry gas play.
A Definitive Year for the Beetaloo: In addition to Origin/Falcon’s comprehensive 2021 work
programme, activity is expected to significantly increase across the rest of the basin:
? Santos and Tamboran Resources announced the spudding of the Tanumbirini-2H
horizontal well in EP 161 in May. Tanumbirini-2H is a horizontal well that will be drilled
to c4,800m, targeting the Mid-Velkerri B shale dry gas play.
EP 161 lies adjacent to EP 76, where the Falcon/Origin JV will drill the Velkerri 76 vertical
pilot well in 2021. However, unlike the Velkerri 76 well which will be targeting the
potentially more lucrative Velkerri shale liquids rich gas play, both the Tanumbirini-2H
and Tanumbirini-3H wells will be targeting the Velkerri shale dry gas play – a play in which
Falcon/Origin have already discovered 6.6Tcf of 2C gross contingent resources through
the Amungee NW-1H well, drilled in 2015/2016. The 6.6Tcf of 2C resources only covers
an area of 1,968km2
, immediately surrounding the Amungee NW-1H well, with any
success by Santos/Tamboran likely to extend the Velkerri shale dry gas play fairway
c100km to the east.
On completion of the Tanumbirini-2H and Tanumbirini-3H wells, Santos and Tamboran
anticipate drilling two additional horizontal wells on EP 161 during 2022 (Inacumba 1H
and 2H) to further delineate any additional resources, capturing key data and informing
future development activity.
Fundamentally Undervalued: Comparing Falcon to its contingent resource weighted peers:
It is easy to see why we believe Falcon is fundamentally undervalued.
Table 1: EV/2C Valuations
Company 2C Resources (mmboe) EV (US$m) EV/2C
Falcon Oil 243 67.6 0.3
Beetaloo Peer 37 143.7 3.9
North American Peer 77 268.0 3.3
Gas Focussed Peer 61 20.9 0.2
AIM Average 1.3
Source: Cenkos Securities.