In times like these, it's essential to step back, cut through the noise of share price fluctuations, and focus on the bigger picture. Many current shareholders might feel the same way, recognizing that market movements can be influenced by numerous variables unrelated to the company's actual performance. Recent tax loss selling has likely contributed to the current share price, presenting an even more attractive buying opportunity. As we move past mid-June, this selling pressure should diminish, making now an opportune time to invest in Helios.
Helios is currently trading at a $60 million USD market cap (3.5c per share), is significantly undervalued. Since its IPO at 2c, Helios has drilled four wells, identifying a substantial new oil and gas resource. All four wells are currently producing oil and gas, with the Presidio Oil & Gas Project boasting a high gas-to-oil ratio. The company's recent agreement with Macaw Energies LLC to implement proprietary technology will reduce gas flaring, enhance oil production rates, and increase revenues.
Recent deals in the Permian region underscore the potential upside for Helios. Just over a week ago, Double Eagle sold its 55,000 acres for over $6.5 billion USD, translating to over $118,000 USD per acre. In stark contrast, Helios's land is valued at just $3.5k per acre. This disparity highlights the enormous upside potential once Helios's assets are fully proven. The first quarter alone saw over $51 billion USD in deals, reflecting a mad scramble for oil projects as key areas in the Permian begin to decline. Helios’s untapped Presidio region offers shareholders a ground-floor opportunity before a potential oil rush ensues.
The following is the NatGas chart which has doubled in just a couple of months. Everyone was all bearish gas back in February, yet the astute investors were piling in. This scenario is not too dissimilar to what I believe Helios will do. We have multiple tailwinds at our backs, just ignore the noise and focus on the facts.
HE8 Price at posting:
3.5¢ Sentiment: Buy Disclosure: Held
