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Bullboard - Stock Discussion Forum Petro One Energy Corp CUDBF

GREY:CUDBF - Post Discussion

Petro One Energy Corp > Chat with Investor Relations
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Post by JakubBull on Mar 20, 2015 10:25am

Chat with Investor Relations

Hi all,  just wanted to share some of the opinions shared.

As of right night POP is steady position they are still cash flow positive, debt free and over 2 million in cash reserves. They wont be delisted or bankrupt anytime soon, unless oil drops below 30$ for a few years (very very unlikely). They are one of the best small/med producers in this space due to there financial health.

POP is producing light oil for a premium and sells upstream to larger refineries/producers there is still strong demand. If they do go after more production in the current bear market they will hunt for wells that guarantee light oil say 50barrels a day as a oppose to a well that could possibly be heavy/med but produce more barrels. 

They have very low costs with few employees, and no offices. They did not take on crazy amount of debt to grow and did not issue junk bonds like many other competitors in this space. 

As per the KMDC deal that went sour, Terry did a great job with the contracts and everything was legally binding. Terry is putting together a case probono that will not cost POP more than 40-50k, and handing off a bullet proof case to litigation in the US. The KMDC started negotiations when the price of oil was 100+/barrel and they expect KMDC was backed in a corner and rolled the dice by not making the private placements hoping they did not get sued. At the official ceremony goverment was present and it was even on channel 6 news. It wont be easy for KMDC to get away with the breach of contract as well as the other subscribers for possible securities fraud. My opinion is that KMDC will have no choice but to settle on the case that Terry builds. Terry is a great resource for the POP team with his 20 years of experience in corporate finance / securities law. 

Apart of the KMDC settlement that will increase POP's cash reserves in the future, they still own a large stake of options in GSR that will not be exerscised unless the oil environment recovers and they need the money to grow, or GSR trades in the multi-dollar range. Eric Sprott has a large stake in GSR and has  done site visits giving great confidence in gold that GSR found.

He was very fond of GSR, and the gold/land unlike any other that many geoligists have seen in their career. He belives that GSR will continue to run after some samples are taken from the best locations.

In my opinion POP should be bought on weakness throughout the oil bear market, do not expect any crazy runs these next few months unless miracolously oil recovers but this is a company that you should keep adding possibly alongside GSR. You will reap the rewards 2-5 years down the road when oil and gold both come off their 6 1/2 year low and 12 year low respectively. Management is smart, and these are the only venture stocks I dare to touch.

 

Have a great weekend all ! 

Everything shared is an opinion interepret it as you wish

Disclosure: Long POP & GSR

Comment by EddieMoney on Mar 20, 2015 10:35am
Great Post, im waiting for investor to grow even more tired of this play to see how low the price will go before i jump back in. Oil is still dropping and so is the stock price, would like to pick this puppy up in the 5-7 cent range. I am a true believer 2 years down the road when oil is a $100 a barrel again POP's Price will be in the $1-$3 dollar range. Time will tell how this play will play ...more  
Comment by JakubBull on Mar 20, 2015 10:50am
Thanks Eddie I appreciate it wish there was an edit function on the bullboards just realized how many grammitcal errors I made, haha! Anyway thats exactly what Im thinking Ive been adding on weakness but I do believe the price can fall to that range and I will wait to see just how low oil fails my best guess 30-38$ a barrel. Going to hold off this month and see whats going on toward the end of ...more  
Comment by MP9.s on Mar 20, 2015 1:02pm
Good job, best post I've seen on this board so far. 
Comment by coolwm082 on Mar 21, 2015 12:06pm
The market completely discounts the value of Terry King.  Law Society of B.C.; Canadian Bar Association, BC Branch (Past Chairman, Securities and Natural Resources, Mining, Oil and Gas Sections); Vancouver Bar Association. This guy knows the business.  Lot's of King bashers over the past few years, unhappy investors, and I can understand the frustration of many, at times myself ...more  
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