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STT Weekend Lounge 17-19 April 2015, page-120

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Toxxxic

2,796 Posts.

20/04/15

08:34

Post #: 15116273
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Originally posted by forrestfield ↑

Thanks for the chart Dr. I personally think oil will settle somewhere between $65-$70. The drilling activity in USA has declined enormously along with work over wells etc and many producing wells must be shut by now due to oil prices.
This will start bringing value in Junior oilers who have been beaten badly. Check out AKK particularly last couple of days. Active oil and gas companies will do the same. I personally like TTE and PYM. TTE is already trading to 52 weeks high but with oil prices close to $65 I believe it should double from here.
The real crush is PYM though. 8.4m cash with 6.5m market cap and producing 120-140bopd at a producing cost of $10. The production is only stable from one well while 4 wells been drilled. Production rate in the area is around 60-80bopd. So once all wells are producing they will be generating cash which would be good enough for triple the market cap. As per my estimate, they are about to be cash flow positive as early as next month at average oil prices of $50. And their lease is surrounded by four billion dollar majors.... A REAL PACKAGE.
Cheers

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Cheers for the heads up FF re PYM, definitely worth a look by the sounds of things. Will have to do some research. Technically it's formed a lovely base. Starting to see some positive movement in money flow indicators which could be warning of a breakout.

Definitely one for the watch list at a minimum.

Last edited by Toxxxic: 20/04/15
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0 Great analysis

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