Als of note about CE1:- is currently undertaking a drilling...

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Quest09

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06/10/23

08:28

Post #: 70201314
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Originally posted by Quest09: ↑

An informative article on CE1

Calima Energy Limited’s Chairman Mr Glenn Whiddon Unveils Promising Developments in Brook’s Assets

Link to article: https://colitco.com/calima-energy-limiteds-chairman-unveils-promising-developments-in-brooks-assets/

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Let's do some math to estimate the value of CE1's proven oil reserves within the Brooks Project (these are my personal calculations. DYOR).

Above article shows:

CE1 Proven Reserves (1P) = 8 million barrels
Approximate Recent Oil Price = US $90.00 per barrel

Value of 1P Reserves = 8,000,000 barrels x US $90.00 per barrel

Value of CE1 1P Reserves = US $720,000,000 (US $720 million dollars).

This calculation only considers 1P Proven Reserves. As shown in above article, CE1 also have 2P reserves (proven and probable), which also should be considered.

Originally posted by Quest09: ↑

So the spud date of P10 was Sept 8, and less than a week later P11 spud date occurred, and less than a week after that P12 spud date occurred.

So if the workflow continues according to trend, then next week P11 could be producing, and a week after that P12 could be producing (as per below image).

Also, P6, P7, and P10 are producing "significantly above the typical production curve" (as shown in above announcement), meaning that a continuation of this trend could result in P11 and P12 also producing "significantly above the typical production curve".

In a best case scenario, we could be receiving more positive news about P11 and P12 within the next week or two, and in a best case scenario where all new wells exceed the typical production curve, we could end up exceeding the stated target of ~4,000 barrels per day just by completing these 3 new wells.

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Als of note about CE1:

- is currently undertaking a drilling campaign for 3 new wells.
- $7.5 million dollar capital return to shareholders is currently underway and due this month, equalling 1.2c returned per share held (approx 10% to 15% return on current share price.
- oil prices have been on a recent uptrend.
- management have recently been buying shares on-market.
- top50 share holders own ~63% of CE1.
- Auctus Advisors have a price target of $0.45c on CE1.
- Canadian oil & gas players have recently presented takeover bids for CE1, and more future bids are being speculated.
- stong news flow expected in the short/medium term as a result of the drilling campaign, the capital return, and the speculated takeover bids.

- Annual Revenue = AU ~ $98 million dollars.

- Current Market Cap = AU ~ $58 million dollars.

CE1 is significantly undervalued IMO.

DYOR

CE1 Price at posting: 9.2¢ Sentiment: Buy Disclosure: Held
5 Upvote

2 Great analysis

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