ASX.MAY 'Biggest O&G prospect on ASX to be drilled.'
I am part of a larger network of buyers who have been accumulating MAY with the consensus opinion it has considerable upside. I first shared information on JAT at 2.2c a week ago. It reached a high of 3.4c today. I'd like to think we only target stocks that have sound FA over the longer term.
*This information has been produced by myself. It is free to distribute. It is my own opinion, not financial advice.
By way of background MAY was identified by some of our group who invested heavily into BPH at 1.5c and BUY at 0.8c levels last year. BPH reached a high of 33c, BUY 4.9c. With options included BPH returned over 30X. BPH hold a 22% interest, BUY a 15% interest in PEP11 which is prospective for 5.7TCF of gas in Sydney. It serves as a worthwhile comparison. At it's peak BPH got close to a A$200m valuation. That would imply a valuation on PEP11 of A$909m. I see that @gosh is a big supporter of MAY which is a huge endorsement. Great minds must think alike as @gosh also identified BUY at 0.4c. It did 12X from lows to highs.
CORPORATE SNAPSHOT Market Cap - A$39m Cash - A$6.8m Shares - ASX.BYE 4,001,175 ASX.MEL 109,952,547 (20% holder) - A$3.1m value Total Cash and Shares - A$9.9m
CHART SNAPSNOT The chart is breaking into 52 week highs. All technical indicators pointing towards a breakout above 3c.
1.6 BILLION BARREL OIL POTENTIAL - BEEHIVE Melbana has a 100% interest in three contiguous permits covering an area of almost 8,000km2 in the Petrel sub-basin. WA-488-P contains the giant Beehive prospect with its Prospective Resource of up to 1.6 billion barrels of oil. The giant Beehive prospect, located in ~40m water depth and one of the largest undrilled hydrocarbon prospects in Australia.
Beehive has a similar if not larger potential than BPH's PEP11. This was recently valued at A$909m pre-drilling.
MAY also owns WA-544-P and NT/P87, permits adjacent to WA-488-P. There is potential to farm these out.
CUBA BLOCK 9 PSC - 235M BARREL OIL POTENTIAL Melbana Energy is prequalified as an onshore and shallow water operator in Cuba and was awarded a 100% participating interest in the Block 9 PSC on 3rd September, 2015. Melbana Energy has a 30% interest in a two well exploration drilling program planned to commence in Q4 2020 that will test over 235 million barrels of prospective resource (best estimate).
'So here we have a 416 million of oil equivalent, prospective resource previously with Cuba, it's all we had 236 million barrels in our drilling program. There, everything we're targeting, it's all elephant hunting.'
CUBA SANTA CRUZ - 100M BARREL OIL POTENTIAL The Santa Cruz oil field is located approximately 45km from Havana between Boca de Jaruco and Canasí oil fields and approximately 150 km west of MAY's existing Block 9. Santa crus was drilled in 2004 and flowed at rates of 1,250 bopd. Early esimates up to 100 million barrel oil recoverable.
TASSIE METHANOL AND LNG PROJECT The Tassie Shoal Projects encompass a single offshore LNG and two world scale offshore Methanol production facilities with Australian Federal Environmental approval to construct the production facilities offshore on Tassie Shoal, a unique shallow water site. The Tassie Shoal LNG Project (TSLNG) offers a commercialization path to LNG for any of the remote gas resources in the region
SUMMARY - Beehive 1.6bn barrel potential; - Cuba Block 9 PSC 235m barrel potential; - Cuba Santa Cruz 100m barrel potential; - Tassie Methanol and LNG Expansion potential to 4Mta
That is over 2Bn barrel of oil potential equivalent across their various leases.
No price targets on this one. Who knows what can happen drilling in "elephant country".
