Seeking Alpha article on BKX Great article by Malcolm Shaw at Seeking Alpha:
Summary:
"BNK Petroleum trades at just a 5% premium to its cash value, yet it offers upside optionality of almost 200%. As a result, the risk-reward appears to be skewed in favor of investors at anywhere close to current levels, especially given the Caney drill data on and around the BKX acreage. The oil is there, that has been proven by two wells already on BKX lands (see map above). The only question is flow rate, and a longer horizontal well (Barnes 6-3H) with a bigger fracture stimulation program will soon be completed to answer that question. When taken together, the flow rates from BKX's prior Barnes 6-2H well and from the closest offsetting XTO well suggest that BKX's chances of proving up an economic resource play are significantly better than what is being discounted by the market. Having a neighbor like XTO aggressively evaluating the Caney play is certainly encouraging and investors won't have to wait too long to see results from the next BKX well that should be completed and flow tested over the next 4-6 weeks.
"I believe BKX is a prime example of the general investor apathy seen in the resource market, which creates opportunity for investors who can recognize value. To see a company essentially trading at cash value with an asset capable of such significant value creation is what every successful resource investor strives to find. Having a background in petroleum geology gives me added confidence in my investment thesis, which is something that not all investors will have, so I would encourage those who do their due diligence to consult with experts in order to form their own views. Geology and engineering can always surprise in either direction, but as always, the market will pay for more information one way or another. In this case, the wait for more data won't be long and the strength of BKX's balance sheet should instill a sense of calm in even the most jittery investor."
Full article: https://seekingalpha.com/article/1428931-bnk-petroleum-cheap-exposure-to-an-emerging-u-s-tight-oil-play