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STT Weekend Lounge 17-19 April 2015, page-114

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marty386

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19/04/15

17:00

Post #: 15114653
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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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TTE has several driving factors to push the sp up. Oil price and option expiry being some of them. Plus one sniff that their drills encounter enough oil to blow up Texas and it's off!
2 Upvote

0 Great analysis

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