Tier IIt is great to see the exchange recognizing progress at EW and hopefully we will see more value investors start to find the company in 2015. The company has good fundamentals including:
- 8 mil in cash. I think they will end 2015 at around 10 mil.
- Should be profitable in 2015
- Low overhead with NIS Petrol and Tag Oil handling operations.
- Increasing production & revenues
- Very low cost production. Netbacks should be around $35 with Brent at $60.
- Stable production. Cheal E-1 and the other Cheal North wells have defied expectations of some investors that they would have rapid decline rates.
- Quality operating partners
- Ability to sell nat gas at favorable prices. With the pipeline connected to Cheal North in March we will get our first nat gas sales (now being flared). I suspect that Tag could produce a lot more nat gas if efforts were focused on that. Note that Tag controls a small electric producer and demand is high on NZ, so marketing nat gas is not an issue.