Latest info & we are in Q4 expected time of news My valuation is simple: Stock 5.5C (= Cash Value) VS 20C with potential update in Q4 according to management (excl. NZ assets.)
*We are getting impatient but management stated in the MD&A to expect an update end of the year. Also a special meeting planned but no news yet.
1. Romania 15% not on Balance Sheet. We had a 2.1% NSR deal but sanctions stopped it. Partner NIS thought it Commercial in February 2021 with lower oil ($55 vs $85 today) and gas prices. Looking for selling with update expected Q4 calendar 2023. 14.5C Based on simple old expenses ($62 mln) calculation when oil and gas prices were far lower. Source: MD&A and website.
2. Cash 5 mln / 90 = 5.5C = 5.5
Total = 20 Cent
3. New Zealand 30% = cashflow = margin of safety now oil is higher and workovers completed.
4. Clean books, no loan and decommissioning liabilities are only legal accounting while they have high reserves and workovers in NZ 30% ownership (New Zealand)
5. Shares tightly held
6. There is a special meeting planned with "Record Date for Voting" November 8.
https://ceo.ca/ew?6a95f70f891a
7. Looks like the fund Mineral and Financial started a position, page 14. https://www.mineralandfinancial.com/investment-centre/presentations/
1. Any time now - management believes update end of 2023 - 15% ownership assets in Romania with NIS can be sold. No costs for $EW.
Just a simple calculation: US 62MLN invested by NIS according to EW website - which is an OLD statement! * 15% (holding EW) = US 9.3 Mln * 1.4 to CAD = $13 mln
https://www.eastwestpetroleum.ca/projects/romania/
13 / 90 shares = CAD 14.5C per share.
*Negative: I like management to do something with the cash: partnership in Canada / dividend / share buyback.
*Negative: I want management to inform shareholders better and put news out on the wire.
*IMO getting in before an update can become a multibagger short-term
https://cdn-ceo-ca.s3.amazonaws.com/1ijn5cc-1ijlp3j-Romania%20EW.png