New to board Hey ONL investors,
I'm quite new to this stock and this board. I've been accumulating for a few months, was big into Arcan but sold some and needed a new growth platform.
Any thoughts on this co? From my perspective, they've done a lot right so far, accumulating a big land position in a highly prospective area at cheap land prices (that's where I noticed them, at land sale results).
Positives:
- great land position in good area
- have gotten to 450 boe/d (soon 600 we hope) with no debt
- reasonable inventory of vertical oil wells, exactly what a junior needs (should not be throwing haymakers yet)
- trading at a market cap of $15 million, land base should be worth that if they can drill a few good wells
- insiders were buying stock recently, though not a lot
Potential negatives:
- pretty small, juniors this size have a rough ride
- is the acreage really that perspective? How come they got all that land so cheap? Why did no one else chase the parcels?
- Duvernay potential may be pretty marginal; I see NRG Divestitures advertised the farmout again these past few days in the DOB so may not be that much interest in the package
- i don't like how they show those huge inventories with billion dollar upside, even if risked - looks amateur for such a small company trading at 30 cents a share
any thoughts? I guess the next Ostracod HZ well will tell a lot, plus the production performance of the one about to come on. I may add more on weakness. Has a ton of potential if the next HZ well works out.
Thoughts/critiques welcome. I'd love to hear other opinions on this little guy
opg210
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