focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
So the CEO of BLOE is on record to be saying they are planning on making it a Mid Tier Company.....
I'll just leave this link here for those people who don't know what that means.
https://www.investopedia.com/terms/m/midcapstock.asp
Ps we are currently at £36m MCAP :-D
Unfortunately I fear Bloe won’t get to see that modest $600m. Someone will make a low ball offer, probably of about $300m and will take this one out.
They have plenty of oil & gas and a country that wants / needs it all. Very limited risk for someone wishing to take this over.
During an interview that came out just before the 16a results Paul stated they were NOT in the market trying to raise money.
https://youtu.be/B9ulv4Qhl_I
8 minutes in is where he talks about it.
I appreciate things change and this was a couple of months ago, but the fact he dismissed raising cash so quick is quite reassuring.
AJamesW
Oh I completely agree, there is an extremely high chance that the further wells will exceed expectations. :-D
I don't see much risk in this share at all at the moment.
- Low costs
- No Debt
- Profitable Company
- High Probability drills planned
- 'Free Cash' being Generated
What's not to like. I'm actually quite excited at how much potential this company has! I just hope it's not taken out by some low ball offer from a big player.
Paul Haywood has already indicated that they are looking to complete the re-entry program on the 4 remaining wells that are shut in.
The CPR states that they expect all the wells (after sidetrack operations) to produce the same amount at 350bopd.
Now if the remaining 4 wells achieve 350bopd each that would equate to 1400bopd. Add that to the 700bopd that Well 16a is currently producing and that gives us 2100bopd.
If we are making $10m a year from 700bopd, it doesn't take a wonderful mathematician to work out that all these wells producing will give us $30m pure profit a year.
That all assumes that the next lot of wells drilled DON'T exceed expectation, AND it doesn't take into consideration of any Gas these drills produced or anything at all to do with Norio or Satskhensis. It also doesn't take into consideration that they could, if they wanted to, open up the taps on 16a.
It appears 'rampy', but this post isn't intended that way, as it would just put false hope into the market. It's merely pointing out what we currently know.
Just because you’ve had a bad experience once don’t assume it’s likely to happen everywhere.
Paul has been on record in the last couple of months saying he is NOT out there seeking new funds.
Obviously things can change, but in the near term it’s unlikely.....unless we intend to buy an asset.
Remember we are break even on 100bopd.....and we are producing from multiple wells and selling to market. This company isn’t like your FRR, it can pay its own bills without going to the shareholders pockets every time.
So it shouldn't be long before we hear about who has been granted more land in the latest Georgian block releases. :-D
The deadline for submission was 10th April 2019!
Paul Haywood has already said that the acquisitions team are busy looking for 'other' opportunities and considering that Block are having great success with their current drill program, doing what they promised with timings etc I wouldn't be surprised if the Georgian government didn't granted us some more land!!!
https://www.icex.es/icex/DescargaDocumentoON?dDocName=461895
At today's price, we have a Forward PE of 4.
In general stocks have a Fwd PE of 20-25.
That means based on the one well income (£10m per year) our SP is classed as good value at anything below 60p
Me....I'm buying on this profit taking lul in the rally :-)
There is a huge amount of potential with this company. Short term they have 3 more well's that are very fast workovers, each with the probability of achieving the same flow rates as 16a.
Then longer term (End of this year) the potential Gas drill.
Some throw silly valuations, but giving a realistic valuation I see £200m MCAP pre gas drill. Post drill....then who knows...
So next drill is Well #38, which is a similar play to 16a.
And the CEO has already stated that they are having to flare off gas before drilling!! What is not to like about this.
By the end of H1 2019 we will likely have 1600bopd giving an approximate income of $2m per month.
Plus fully funded for these drills.
Currently earning $1m FREE cash from 16a which will pay for the remaining side tracks and well re-entries.
About to drill Well 38, which having just been prepared is already flaring gas...before they start to drill.
All for a MCAP of £21m
Zooropa
Why would they need to do a placing? They have cash in the bank and they are fully funded for this phase of work! Also they now have $1m per month of revenue coming in.
As Paul has said in the last web video before the 16a results were out, he stated they were not looking to raise cash at this time.
....Oh and if anyone missed this bit in the RNS:-
"the well is expected to deliver gross monthly free cash to the Company of US$1m"
Yes you read it correctly....$1m per month.
On a company only valued at £21m
If it was a straight forward 300-500bopd flow then I suspect we would have heard already.
The fact that they are taking their time probably means that they are trying to work out what to do. It could mean they are looking to develop the gas as well as the oil from Well 16a.
The longer this wait for an RNS is, the more I'm convinced that it's bigger than we thought.
brgmg69, You're right!
I totally forgot about well 38....they had the same target as 16a....blimey if we get a similar result our of well 38 as we did for 16a, then I think we can all go and live in the Caribbean!!!
Just looking around at various Oilers....and I notice UKOG posted a fabulous 220 bopd from their drill today and they have a mcap of £69m.
I wonder where 1100bopd would put us?
Not forgetting the Norio oil (which covers company capex) or the potential gas drill.
Anyone have any 'sensible' thoughts on what our MCAP is likely to be if we stabilize at 1100bopd?