George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
https://ihsmarkit.com/research-analysis/2022-high-impact-well-report.html
Thanks Pauly. The awful wider market conditions and placing overhang have kept a lid on it this week and could make it seem like same old same old, but ignoring the SP action for a second, the fundamentals look very compelling at these levels. Market conditions stabilize and overhang clears and there should be no stopping this. Yesterday's move shows how quickly it can surge. Whether you're a new investor or long term shareholder have a good weekend.
Most stocks have potential to one degree or another. They key is to assess which companies offers the greatest risked potential compared with their market caps and put capital to work in them as the value unlocking event approaches.
Exactly. This has been a tough long haul if you got in hoping for the award of the Tano block. But just look at what has happened. This is way better than a Tano award. Tano is early stage and even if it was awarded it would be many years and a lot of expenditure before we got anywhere near drilling a well. Right now CLON has gone from zombie company to just weeks away from a potentially massive net discovery. I can't understand why some of you want to refrain from discussing the fundamentals of the company and resort to negativity. As far as I can see all your Christmases have come at once. You're very lucky.
Exactly. This has been a tough long haul if you got in hoping for the award of the Tano block. But just look at what has happened. This is way better than a Tano award. Tano is early stage and even if it was awarded it would be many years and a lot of expenditure before we got anywhere near drilling a well. Right now CLON has gone from zombie company to just weeks away from a potentially massive net discovery. I can't understand why some of you want to refrain from discussing the fundamentals of the company and resort to negativity. As far as I can see all your Christmases have come at once. You're very lucky.
100p was obviously sarcasm. The 10p figure though is more than feasible on a discovery. ADV was on the equivalent of 7.5p per CLON share before Buffalo-10 on a risked basis and many other companies have also been on similar or higher multiples before their drill results, so it's not unreasonable to think CLON will reach 10p in the event it makes a discovery. The size of what's on offer here is so big that some people are just failing to compute. BOD made a great move. CLON is only weeks away from potentially having a 140 MMBOE net discovery under its belt.
100p was obviously sarcasm. The 10p figure though is more than feasible on a discovery. ADV was on the equivalent of 7.5p per CLON share before Buffalo-10 on a risked basis and many other companies have also been on similar or higher multiples before their drill results, so it's not unreasonable to think CLON will reach 10p in the event it makes a discovery. The size of what's on offer here is so big that some people are just failing to compute. BOD made a great move. CLON is only weeks away from potentially having a 140 MMBOE net discovery under its belt.
Monday's announcement has completely transformed CLON from what was effectively a zombie company with zero active projects to one with huge exposure to a significant drill in a prolific basin. Any oil and gas investor that has taken a look at the fundamentals will immediately see the value on offer here, so it's no wonder that new investors have suddenly taken an interest in the stock.
As I said the other day, anyone that's been a long term share holder here isn't worth listening to as they were basically just punters punting on a zombie trading chip which had no real investment case until this week. Forget about CLON as it was and look at the fundamentals with fresh eyes. The board have made a very good move here, which has the potential to completely transform the company.
Prior to results ADV reached 5.7p giving it a market cap of $79.9M.
5.7p (SP) x 1027.61 (shares in millions) / 100 (convert to £) / 0.7327 (USDGBP on day) = $79.9M
ADV's share of Buffalo-10 was 16.3 MMBOE risked.
34.3 MMBOE x 0.50 (50% interest) x 0.95 (COS) = 16.3 MMBOE
This means that ADV was priced at $4.91/BOE risked prior to the results of Buffalo-10.
$79.9M / 16.3 MMBOE = $4.91/BOE
CLON is currently 0.425p giving it a market cap of $12.3M.
0.425p (SP) x 2370.82 (shares in millions) / 100 (convert to £) / 0.82 (USDGBP on day) = $12.3M
CLON's share of Sasanof-1 is 44 MMBOE risked.
1376 MMBOE x 0.10 (10% interest) x 0.32 (COS) = 44 MMBOE
This means that CLON is priced at $0.28/BOE risked prior to the results of Sasanof-1.
$12.3M / 44 MMBOE = $0.28/BOE
These two multiples are directly comparable as they take the COS into account. At the current SP CLON is equivalent to buying ADV at 0.32p in the run up to Buffalo-10.
5.7p / 4.91 x 0.28 = 0.32p
Now go and look at the ADV price chart. At the current SP CLON is currently priced at the same valuation per risked barrel as ADV was once the well was announced as a duster!
I have a saying in investing, 'If it looks too good to be true, hurry up and buy before someone else does.' It never ceases to amaze me how everyone sits round watching everyone else staring the gift-horse in the mouth questioning their own sanity. It's not us that are stupid, it's the market cap.
Macbookpro, your figures so sound utterly ridiculous you sound like a deranged imbecile. Thing is though ... I agree 100%, as the maths suggests you are correct. The market cap here is so out of whack with the size of the asset that anyone crunching the numbers and doing sensible analysis sounds like a complete moron. Best value drill I've ever seen. Nothing comes close at this valuation. Good luck all and DYOR.
There is plenty of information on the Sasanof-1 drill in this excellent research video including the COS. Well worth a watch.
https://www.youtube.com/watch?v=PZtabvOpUUg