Firering Strategic Minerals: From explorer to producer. Watch the video here.
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In 5-10 years. Kertang coming in during 2025 drilling would absolutely skyrocket this but lots of other things to look forward too I.e M&A
I went over todays Auctus analysis note with a 60p target - a mere m/cap of £34m compared to £10.5m now.
There's a range of per boe values for those in production to the existing discoveries and anything from the Norwegian exploration.
In total they have an unrisked price target of £1.09 which assumes a total of 11.9 mmboe net. Realistically including the production, they have roughly third+ of that now - and possibly more than half already subject to more verification of the numbers from the discoveries made.
The lowest price per boe used for Norway is $4.14 per boe.
There's nothing in the note for the blue sky potential of Kertang.
Kertang at 9 TCF estimated recoverable is about 1.5 billion boe of which they have 52.5% and an analog to Petronas 6 TCF Kaswari field coming on stream at 900 mmcf/d.
If they farm down to a minimum holding of 10% and carried, it would mean a target of 150 mmboe and at about $3/boe represents a value of about $450m/£350m to chase or £6/share if it came in on that methology/current shares in issue.
On a partial carry and say 15-20% retained and expanded to nearer 100m shares it could still be worth about £5 - £7/share again on that basis.
It's fully covered by 3D and threre are 2 adjacent prospects which are each about half the size and imo all 3 could be around 15 TCF recoverable so even much more value to play for.
All 3 prospects covered by £25m worth of 3D of 2900 km2 with over 6,000 km2 carried out across the 12,000 km2 block.
Compare that to UPL this am and at 3p last week = £35m m/cap and would be a starting value for LBE at 61p not to mention Norway or other upcoming deals.
Decent prize to play for and significantly underpinned and as ever dyor.
Over 51% of the shares held by Institutions (Axa 3.9%, Progressive Capital Partners 14.5%, Janus Henderson, 5.3%, Cannacord 3.8%, 2 others = HNWs etc) and directors.
3 x 500k trades from 10.30am at 17.6p reported late out of just under 2 million total volume.
Looking at today’s late reported large volume trades, it looks like sells. Depending who’s been selling in the last couple of weeks we might see more or this may be it. (From the volume it looks like one of the top 3 holders).
Sound management and very low shares in issue. Plenty upside here with regular management RNS updates
All Management have purchased a lot shares at much higher prices than todays stock price..
Think Faroe Pet and we could be looking at £1.50 plus by end 2024 if they play there cards right and low or no dilution.
Strong buy IMO and very cheap now..
Agreed Bob, based off the investor call a few days back, we're already looking at reasonable sized production deals in Norway with some shortlisted. Anything we get will be non-operated. Helge mentioned it would be appropriately sized which given they start the Statjford deal as a small deal (750-1000 bbls/d when all 5 wells are online). I'd be expecting the next production deal in the region of 2,500 - 5,000 STB/d.
What really pricked up my ears were, we can fund unto $200 million dollars of production deals - considering the Mcap of £10 million, this is a sleep giant. I know people usually like to wait for tangible evidence before diving in, but time and time again we've seen the multi-baggers are made when you're in early. Timing is everything but I'm happy to be early and ride it out.
The other thing that got my attention is obviously Kertang (or the MONSTER as they labeled it) - high PPM gas shows at surface drill cores, low CO2, 9 TRILLION CF and one of many, many prospects. If that block becomes derisked in 2025 drill on the Petronas rig schedule then Longboat is a buyout target for any major or National oil company.
We've then got Kvikja development as part of the Equinor troll development so lots to look forward to. I know it's not moving at the pace we'd all like but the stars are lining up slowly so I'll keep tucking away more shares each month.
Absolutely Deeko. The Japex deal with funding ready for future deals is key here. Im sure they are working on more production and farm-in deals as we speak. Japex is a very shrwed multinational company part owned by gov of Japan and they would not have invested 150 million in financing and investment if they had any doubts with the management or LBE prospects.
Malaysia looks very promising esp with Menzies and Eliet expertise on board. They both set up Topaz as they believed in this., (Menzies being the CEO of Salamander back in the day) We need a farm out and it will happen especially with low overhead margins in Malaysia once any significant gas discovery is made. This Kertang prospect in Sarawak is renowned for exploration success in recent years. DYOR
Honestly i cant find any other better small cap growth prospects than this. Good luck to all LTHs.
Looking forward to see this play out in the future and contributing with you smart investors :)