• EV equates to ~$A1.50/bbl vs recent in country, regional sales in excess of $A4/bbl Significantly undervalued vs peers in the region, where large companies are buying up smaller producers. • Outlook is to drill 2 new production wells in 2024 and remediate 3 existing wells – thereby increasing production to ~1500 bbls/day by end 4Q 2024 Should be hearing about the drilling that will be taking place and increases in production.
From last quarterly regarding this:
The Company continues to review the appropriate timing to commence the drilling of its next well. Future drilling work will require access to additional working capital and/or securing deferred payment terms with a local turnkey drilling operator and/or prepayment of additional oil sales by an oil trader. Discussions are ongoing with various parties in respect to these various funding options.
Looks like there will be something in the next quarter if they are going to drill these on time regarding funding. Ideally not through dilutive raises. • Set up asset for potential sale during 2025 to larger national player (KZ, Chinese or Korean) Wait until JPR sells for at least 3x the current price given the EV comparison made by them above.
To be honest, this reminds me of the position CE1 was in about a year ago. Have large oil field they need to increase production on, already have debt and need to take on more to scale, so they decide to entertain bids. End up selling their project and returning to all shareholders pretty nicely. I see JPR doing the same thing, and judging by the presentation in January 2024, will likely happen. Sales process is likely to drag on past 2025 though. Seems like a pretty solid time to enter for my risk appetite.
JPR Price at posting:
2.6¢ Sentiment: Buy Disclosure: Not Held
