RE: PETROAMERICA study case
Check PTA case....Petroamerica. PTA has also 40-50% WI in Llanos Basin of Colombia. PTA is NOT an operator SAME CASE like SCS. The operator is Parex and Cepolsa and few others for the wells of Petroamerica in Llanos Basin. Despite the fact that PTA is in EXPLORATION phase and NOTHING could warranty the existence of oil, the oil was found and PTA price has risen significantly lately....300% and goes higher.
Here with Second Wave, WE DO KNOW THAT THE OIL IS THERE! it is NOT like the Colombian Basins.
BHL is a PROVEN HUGE OIL POOL with IP same like PTA in Colombia AND HIGHER. Read the latest report where Second shows IP of 4,000 and 5,000 BOEPD !
After the recompletions and the establishment of the infrastructure (electrification, pipelines) during the summer, the drilling starts up AGAIN with Crescent as operator.
Second has identified 90 LOCATIONS and only 16 have been drilled thus far. The company says it clearly.
Second has almost $30M POSITIVE FFO annually. Its cost share per well is $2M (40% WI) for Second, so the company can drill minimum 10 NEW WELLS within its funds from operations annual budget.
3) ADD the initiation of the WATERFLOOD program that DOUBLES (minimum) the production. Check the latest news from Pinecrest, the FIRST VERY ENCOURAGING results from Arcan Resources, Crescent, Legacy.
4) The current EV is $125M ! $60,000 per boepd (75% oil)!
The company trades just 1x (!) its FFO with Edmonton at $85 currently !