Is the worm about to turn, page-2

FINALISED: 29-09-15 PUBLISHED: 29-09-15

Tiny ASX Oil Explorer Next Door to $50BN Eni and $45BN Statoil

Cashed up majors are ploughing hundreds of millions of dollars into exploration of the Northern Carnarvon gas province, offshore Western Australia.
They are all hunting for the next emerging oil and gas play in a region which hosts the gigantic 35.3 TCF gas fields of Gorgon and Jansz-Io.
On trend with giant gas fields feeding both onshore and offshore LNG plants, $45BN Norwegian major Statoil and the $50BN Italian Eni are paying up to $50M to conduct 3D seismic surveying on one permit alone.

And just to the south of this very same permit, on the exact same trend, sits one tiny ASX listed oil and gas explorer, capped at just $1.6M​

While Statoil and Eni spend tens of millions of dollars on seismic, next door our company already has licensed existing 3D seismic data over its permit – which it grabbed for a low upfront cost.
In fact, nothing in the way of additional seismic acquisition is required for our company to attract a farmin partner…
As well as its strategic location, exploring next to active majors, we also like its cash pile compared to its market cap:

This company just got news of a US$500,000 windfall from a previous venture – and is now essentially trading at cash backing​

This company represents an early stage entry point into a company well positioned to create significant shareholder wealth. Success is no guarantee though – and this is a speculative investment.
It’s not just one offshore permit though – it’s got four new highly prospective exploration permits that it owns a majority stake in.
It has been diligently positioning itself for the next industry upturn, yet the company and its opportunistic acquisitions have gone completely and utterly under the radar.

This company’s stake in four highly prospective exploration permits are currently essentially valued at zero​

At such a low market cap of $1.6M, it is therefore well poised for a near-term re-rating, and could offer multi-bagger potential over the near to mid-term. At the same time, it is early days here, so caution should be applied.
With 10 TCF of gas (best case) and over 20 TCF in the high case recently independently verified, we are expecting a similarly large prospective oil resource to be announced in the coming weeks.
Given the size of the three structures mapped by this company to date, we would expect the prospective oil resource to total hundreds of millions of barrels…
It’s time we took a closer look at this stock (before everyone else gets their hands on it):