TSXV:PEH.H - Post by User
Post by
pehupon Jul 20, 2013 1:51pm
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Post# 21619899
Production imminent - Infrastructure complete + 2 to 5 times gas + OIL Play
Production imminent - Infrastructure complete + 2 to 5 times gas + OIL Play1) Gas sale to Zhejiang Gas (Provincial gas Utlity to supply to 50 million people in Zheijang Province)
2) Zhejiang gas Price is US$14+ per MCF 2a) CO2 priced at US$2.50 MCF.
3) Gas sales Q4 2013. Cash flow positive about $40 cent EPS 2014. Stock shouldbe valued closer to $2
REAL UPSIDE FROM
4) CNOOC is major partner. CNOOC and Bank of China assures funding for future development in rest of Concession block. PEH has proven connections with CNOOC and parties in HK and China that is worth more than the value of the stock today i believe going forward.
5) this gas play and $US$600+ CAPEX establishes infrasture for a major region play(EAST CHINA SEA) for PEH & CNOOC going forward for the next 7 years.
6) All future discoveries now have major additional value as major infrastructure is in.
7) There is DOUBLE the gas amount (225 BCF) in the DISCOVERY at deeper level that can now be extracted with latest fracking technology. This alone adds $150 million or $1+/share in additional value when produced andextends gas life span.
8) Additional $21Mill raise in place can do siesmic and extend into Concession
9) Next drill target will be an OIL Play to the EAST This OIL play is redrilling and Older well drilled by Texaco in 1990s that is in PEH concession
10) Additional multi TCF of gas expected from existing gas play and importyantly new wells extending north for additional gas. (Concession is over 1.5 million acres) So a major rolling development finally and hopefully Management can then get the real value understood in the market for PEH.
Best low risk play on the TSX.