Member Info for Phoebus

You'll notice that Sasanof-1 shares the IHS Markit list of 20 high impact wells of 2022 with Venus-1 and Graff-1, which are monsters. The list also includes PANR's Theta West-1. PANR has reached over £1B market cap on the basis of it's Alaska project. CLON's drill is in serious company.
https://ihsmarkit.com/research-analysis/2022-high-impact-well-report.html

Hope for a piece of paper conveying onwership of an early stage exploration licence in Ghana versus a 10% stake in one of the 20 highest impact wells of 2022 spudding shortly in a prolific area and a safe jurisdiction. There's no contest. BOD's used the depth charges on this one. Blown Ghana well and truly out the water. Great move.

Mannan, how much for 137.6 MBOE 2U net share prior to results? Divide that by shares in issue.

I agree HFB. Calling for a one bagger shows a complete lack of understanding as to what is on offer. Stop looking at the pretty chart for valuation guidance and crunch the numbers.

Precisely. This is dirt cheap for the quantum of drill. £12M market cap for a 137.6 MMBOE 2U net share is insane. This would have to sky rocket just to reach the same valuation per barrel of oil equivalent as other drills pre result. Quite remarkable.

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.

Hoping, imagine you'd been called a ramper on ADV for calling it a buy at 0.32p in the run up to drilling. Oh yes, it's all time low was 0.95p. LOL

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.

Which is to be expected as there is a new asset, one that is actually active.

Paul, long term shareholders are no better versed in this business than anyone else that has followed the lack of newsflows from the sidelines over many years.

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.

LOL

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.