I know it's overseas but you might want to look at a company called Pantheon Resources which is a oil & gas company traded on the London Stock Exchange with the code PANR.
The CEO is doing a TV interview today, the interview if the last one is anything to go by, was released around 10am or 11am (I can't remember which & they'll post a link on the ADVFN BB). They last around 15 mins & the last one certainly moved the share price higher for the following couple of days.
It might well be a day trade.
However if any of you do have a "longer term" section as part of your portfolio/strategy, then I'd suggest researching it. The massive risks that were attached to this prior to the first 2 exploration wells in Texas, have now gone.
They are going to be highly profitable even in the current dire price environment.
It's a play I've researched for virtually a year now.
The latest news, lets me with confidence say that they will in time have reserves of at least 40 mmboe for the West AA field in Polk County & at least 125 mmboe for Kara Farms in Tyler County (that's net to there 50% interest in the projects). There are 3 other mini basins still to be drilled.
They will be raising additional funds soon probably @ $20M, but it might be via debt (they have none currently) rather than equity. Even if its equity its only £14M against a £220M market cap.
The company's stated goal is to prove up the reserves & then sell the company or assets in roughly 2 years time.
165 mmboe, if you value it in the ground at $10 per boe, gives a figure of $1.65 Billion or £1.15 Billion, or well over £5 per share, against the current price of £1.18.
If oil & gas prices recovery over the next 2 years,they may well get a higher price per boe in the ground. There is significant upside to the above numbers when you factor in the other 3 mini basins etc.
So £5 is in my view the base case number, I won't be in the least bit surprised if the sale price ends up being 10 times today's share price.
Virtually no-one else out there has operating costs as low as there's are & there is no political risk, given its all located in Texas.
Why am I suggesting people take a serious look at it?
Well I'm someone who does like to contribute to the things I'm involved with. My contributions to the Daytraders thread are very limited given that I live in Europe & I'm not a chartist. Yes I can occasional contribute some thoughts to company announcements, but that's very little compared to others. So this is my way of trying to give a little something back.
