History of Stonehorse Energy and their strategy..Stonehorse...

History of Stonehorse Energy and their strategy.
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Stonehorse Energy is born as the reverse takeover over of NIO
Stonehorse energy previous activity was in affect a different the entity NIO, a Nickel ore exploration company where they ran up losses and acquired tax credits of over 20 million.

David deloub , Jay Stephenson and Robert Gardener then executed a reverse takeover of NIO to create SHE (Stonehorse energy)
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The pro's of a reverse take over was less hoops to jump through and hence cheaper with the benefit of acquiring Tax credits to offset future SHE profits.
With a new board, new activity SHE was born as new company to exploit the Jewell well.
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The Jewell well was a US Based high impact well with Initial high production rates, but fast slow down.
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SHE was able to grow over 130%during the following 20 months resulting cash and equivalents accumulation 13 million.
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SHE initial strategy post US Jewell was to:
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1) Open up further wells in the southern USA States.
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2) Trial operators to operate a well in Queensland.
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3) Exploit opportunities in the Canada.
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Stonehorse strategy Part 1.
Post Jewell well, The US Administration at the time tore up oil trade agreements involving the selling of oil from the Canada via pipelines to the US.
This results in a large reduction in demand for oil in Canada causing the Industry in Canada to suffer and the oil industry in the Southern US states to explode leading to a demand for drillers and well operator services causing prices to surge and reduce availability of operators ,the USA is now the worlds largest producer.
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In addition billions of dollars was made available to drill operators to cap retired or orphaned well to stop the escape of greenhouse gases,
This put further demand on US well operator services as it to cap old well was good money for easy services.
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It was during this time 2023/ early 2024 that Stonehorse energy tried to utilize the services of well operators to open up new wells in Louisiana, but against the elevated demand for drill operator services Stonehorse could not find any reasonable priced operators thus no announcements on new wells occurred and Stonehorse energy got a reputation of not doing anything apart form the Jewell well. Thus stagnation of the share price occurred and frustration of shareholders who perceived little progress being made.
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Stonehorse strategy Part 2
Stonehorse energy as part of its Due diligence trialed a well operator in Queensland with small project, that appeared to have stalled.
Thanks to their due diligence to loss's was extremely small. SHE has indicated it will not focus on Queensland any more.
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Stonehorse strategy Part 3
This consisted of opening up Net working interest in wells in Canada which has bore initial fruit with the Certus well that started producing in October 2023 having higher than expected initial flow rates followed by the Gryphon well that completed in January 2024 under budget and is now producing.
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Only a small percentage of these wells production had been received by the end of the last quarter due to standard terms of business and payment lag thus not making it into the December 2024 quartile report. Though no doubt will pop up in the next quarter.
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Stonehorse energy appears intent on expanding its Canadian operations having built an experienced team their having quantified a ranked list of well opportunities.
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Any new well that open in Canada can in the future probably take advantage of the Trans mountain pipeline, a pipeline spanning eastern Canada to processing plants and ports in Vancouver ready for shipments to Asia where higher prices could be achieved or the US.
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New wells are probably currently being negotiated along with Stonehorse newest employee (Ms Manning) negotiating sales.
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Announcements of new wells this year would be further confirmation of Stonehorse strategy that have already been verbalized by David Deloub in written form as well as video presentations.
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If you look at the well profiles and their EBIT generation and assume the reinvest into new wells then the graphs posted previously can be seen.
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Afterthoughts
It would be nice if David deloub retained his position to see the outcome of the strategy he has been managing.







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