RE: ValuationI know why TPL is not sexy, just coz KAZAKHSTAN
I have 30 oil stocks on my watchlist they are all valued at very good price. The only 2 that are lagging even if they keep finding oil is TPL and Max petroleum (which is 100% kazakhstan)
Max Petroleum have a market value of 220$ million
they have 100$ millions in cash
Have found close 100 million barrels on 3 fields
Are already producing close to 3'000bpd of light oil and ramping up to 4000bpd at the end of the year, already tight to a pipeline.
They have a portfolio of 5.5 BILLIONS of potential recoverable oil with high COS (20% to 50%)
they will spud soon the high impact billion barrel field.....
.......
Everybody on Max petroleum board are desesperated coz they keep finding more oil they keep producing more oil. They have a lot of cash and an amazing portfolio of prospects but the stock price is just flat.
BUT they are in Kazakhstan and investors does not like it :
1) One of the highest fiscal term in the world
2) The Kazak gov has a bad reputation they took out 1 licence of Max petroleum 1 day, they ask them more tax when they got their PSC and Max brought them to court, now Max has to pay more tax, They ask to ENI more tax on one of their field but ENI says it would not be profitable so they freeze the investment.
On top of that contrary to Max petroleum, TPL management is very bad
So never expect the market to pay more than 3$ /barrel for ur kazak oil
KAZAKSTHAN is not sexy and for some reason........
As I say before the only things that can really move up that stock is the tajikistan......
Good luck to all holders
Julien