TSX:HWX - Post Discussion
Post by
retiredcf on Feb 09, 2024 9:02am
RBC
February 8, 2024
Headwater Exploration Inc.
Unveiling a new position in the Mannville
TSX: HWX | CAD 6.29 | Sector Perform | Price Target CAD 8.00
Sentiment: Neutral
Headwater unveiled a previously discussed new play in conjunction with two new well licenses. The latest presentation highlights ~55 sections in the fairway, sitting northeast of Strathcona Resources' Druid asset and west of Cardinal's recent Reford SAGD project in Saskatchewan. Headwater previously noted that the company added 155 net sections of land in non-Clearwater oil fairways, with the 2024 exploration budget including four wells focused on non-Clearwater opportunities. The updated slide highlights two Q1/24 tests at Handel during Q1, though results are unlikely to be included with Q4/23 earnings (expected on March 7, 2024, after markets close). Overall, we view this update constructively with the company pursuing new exploration opportunities to further scale the business and add to inventory, though we note the play is exploratory in nature and carries a higher risk profile; please see our recent Mannville Resurgence note for more details on the broader play and Exhibit 1 for more details.
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