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-   -   Strong Buy: Oil explorer set to drill in december (http://www.stockrants.com/forum/canadian-stock-picks/11936-oil-explorer-set-drill-december.html)

hamilcar54 10-30-2015 04:02 AM

Oil explorer set to drill in december
 
Terra Nova Energy (TGC ticker on Canadian Venture):

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 20% of the oil properties
- 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 6$ when the reserves are proven after the drilling campaign ends (The stock now trades around 0,08$)! Remember, this is only for their explored 6% acreage, the potential upside here is still much higher !

Management did a PP and they themselves raised money for the company earlier this year so they also have a lot of skin in the game !

The company trades on the Canadian Venture exchange but also on the OTC (TNVMF). I would advise to buy on the Venture since volume there is always much higher then on the OTC, the OTC is very thinly traded so it's difficult to get in/out.


Company Share Structure:

87.5 Million Shares
7.4 Million Options
1.9 Million Warrants
= 96.8 Million fully diluted


Drilling news:
Terra Nova Engages Senex Energy to Complete First Well on PEL 444 - Yahoo Finance

A runup into drilling is expected here and a big pop when they hit oil [cash]


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