Yeah, super interesting. Just a matter of time. If a few...

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Drswing

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13/03/24

14:23

Post #: 72865772
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Originally posted by Onspeed: ↑

$20k pushed us down 10% to new lows, with a $44 trade dropping it to $0.058. Nobody selling at these levels are in a profit so what is the individual $44 trade trying to do. Always interesting.

Anyway,

Diving into some Boaz research I've found Equinor's Eirin development infrastructure is designed to have up to four well expansions. The purpose of this is for "future discoveries in the area". Looking at the licensing map for Norskpetrol and NSTA UK (I've merged it), you'll see our licenses P-2610 (200MBoe) and another Equinor UK license at 16/13b. Note the proximity to Eirin. On the Norsk map you'll see Equinor's licenses coloured in orange/brown. Seems obvious to me the Equinor UK will opt to drill Boaz to test for a future expansion, as there isn't much around it in the way of mature targets that I could find. Still risk there but I'm confident it will be a matter of timing since they have a few targets in the North Sea proper

A fun pivot to value the license at the current state with technical studies putting the resource mean at 206Mboe. Obviously we can't value a project without a defined drill date and use COS to arrive at an estimated NPV or MV etc, but you can apply a rule of thumb metric to arrive at a license value. Using 5% I get a license value of $24m. Even if you quartered that again you still see that market is applying zero value to our assets.

GLTA

References
https://www.nsenergybusiness.com/projects/eirin-field-north-sea/
https://www.arcgis.com/apps/webappviewer/index.html?id=f4b1ea5802944a55aa4a9df0184205a5
https://www.norskpetroleum.no/en/interactive-map-quick-downloads/interactive-map/?mapv2ObjType=license&mapv2ObjId=38723921

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Yeah, super interesting. Just a matter of time. If a few timeline expectations are set for catalysts, we should see some firming. Until then, games.

FDR Price at posting: 6.1¢ Sentiment: Hold Disclosure: Held
2 Upvote

0 Great analysis

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