Tax Season is Here! Save 15% on H&R Block Online
iconAll times are GMT -4. The time now is 11:21 AM. | Search:

» StockRants Stock Forum » Public Stock Forums » US Penny Stock Picks » Strong Buy: Oil explorer set to drill in december



Reply
 
Thread Tools Search this Thread
Old 10-30-2015, 03:56 AM   Nav to Top  #1
hamilcar54
Junior Trader
 
hamilcar54's Avatar
 
Join Date: Oct 2015
Location: Bruges
Posts: 4
Favorites: HENC TGC EFLO
Rep Power: 58
Reputation: 10
hamilcar54 is on a distinguished road
Bomb Oil explorer set to drill in december

Holloman Energy: HENC ticker on OTC

Focused on onshore exploring for and developing low cost, high margin oil in Australia's Cooper Basin.

Short info sheet:

- cost per barrel is 23-28$
- Brent oil now sells for around 50$ a barrel
- the company receives an extra 10%-15% premium above the Brent market price
- to be proven reserves in the upcoming drilling campaign of around 92.7 million barrels of oil
- Company owns around 50% of all acreage
- drilling starts in december
- only 6% of the total acreage has been shot with 3d seismic, that leaves still 93% unexplored. Can you imagine what the other 93% might hold if 6% of their acreage already shows a possible 92.7 million barrels !!!

This results in a possible share price of around 12$ when the reserves are proven after the drilling campaign ends (The stock now trades around 0,28$)! Remember, this is only for their explored 6% acreage, the potential upside here is still much higher !

Management is from Holloman Corporation in Houston and are also the largest shareholders (60 % - Holloman Value Holdings), they also provide all financing and have a lot riding on this.

The company will start with drilling 1 well, if successfull and the operator does a good job then at least 2 more wells will be drilled immediately after well#1 is completed.

Company Share Structure:

112.6 million shares fully diluted

Drilling news:

Baikal #1 Drilling Program Underway on PEL 444 - Yahoo Finance

Stocks such as these always run up when drilling is about to begin so you can at least see a double from this level and if they hit oil the stock will go above 1$ easily
hamilcar54 is offline   Rate this post Yes | No Reply With Quote
Old 11-02-2015, 03:29 AM   Nav to Top  #2
hamilcar54
Junior Trader
 
hamilcar54's Avatar
 
Join Date: Oct 2015
Location: Bruges
Posts: 4
Favorites: HENC TGC EFLO
Rep Power: 58
Reputation: 10
hamilcar54 is on a distinguished road
Thread Starter
Shocked HENC update

Since drilling news has been announced the stock is up around 15% - 20%
The runup should continue into drilling that's to take place early december. It should double from this level before they drill. If they hit oil then it should double again.

I am quite confident oil will be struck. The companies have used new tools available in the industry like the virtual drilling software of Rex international, see http://www.rexih.com/pdf/02-RVD1.pdf
It's software has much higher accuracy rate then using conventional methods to detect oil. (it's own tests give it a 100% accuracy rate). The company has spent more then a year analyzing their seismic data together with Rex to derisk their drilling campaign and to make sure they hit it right at the first try.

If the first well is a success then at least 2 more wells will be drilled immediately to take advantage of the oil rig and boots on the ground already there. Especially for Holloman (HENC) drilling is cheap due to the favourable exchange rate (USD to AUD) and is an incentive to keep drilling.
hamilcar54 is offline   Rate this post Yes | No Reply With Quote
Reply

Tags
HENC

Similar Threads
Thread Thread Starter Forum Replies Last Post
Strong Buy: Oil explorer set to drill in december hamilcar54 Canadian Stock Picks 0 10-30-2015 04:02 AM
Strong Buy: Heres my fav gold explorer , well worth the dd imho: Goldendayscom Canadian Stock Picks 1 08-12-2013 04:19 PM
Strong Buy: VIPR Industries Inc. Gold & Uranium Explorer $$$ Bulldogs11 US Penny Stock Picks 0 02-23-2011 07:45 PM


Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On