Top Pick Last stock in the clip. After listening to this, you'll be tempted to back up the truck notwithstanding the current energy markets. GLTA
https://www.bnn.ca/Video/player.aspx?vid=525981
Toro Oil and Gas
Cost base: $1.00. Purchased in late 2014 and bought more - a deal closing tomorrow!
A new entrant into the sector with a seasoned team with previous success. The company has raised $45 million to fund a $25 million asset purchase, with residual capital used for exploitation. The asset is a Viking oil pool in Alberta that is known to have over 300 million bbls of oil in place. Drilling density is 2 wells per section, compared to comparable reservoirs that have been developed with up to 16 wells per section. The unitized field covers 60 sections. Most sections have 2 gas injection wells already drilled which will allow for additional gas conservation and reservoir pressure maintenance. The reservoir is known to have recovered 5 percent of the oil in place versus comparable fields where recovery factors have exceeded 20 percent. An additional recovery of 10 percent of the OIP equals 30 million bbls. With a market cap of approximately $56 million and their exploitation strategy becoming self-funding, the value proposition is compelling considering the potential addition of 30 million bbls of reserves.
| 2015-01-07 | TOP PICK | Bill Bonner | A brand-new entrant to the Street. Management has been out of the market for a couple of years. They financed themselves and recently made an acquisition of an underutilized Viking oil pool that has about 300 million barrels of oil in place. Adjacent fields have recovery factors of 20%-25%. So far 5% of the oil in place has been recovered. If they can get an additional 10% recovery, that is 30 million barrels of oil. There is huge leverage in this name. What he really likes about the asset is that the oil pool is gas driven, not water driven. There are 60 sections of land in the pool and they own 100% of it. On every section there are 2 gas injection wells. They have to pull the gas out of the oil and reinject it, so all those costs are sunk. Because of this, the exploitation of this is going to be fairly seamless and going to be self financing with not very much capital.
| Price:
$1.000
Subject:
CANADIAN ENERGY
Bias:
OPTIMISTIC
Owned:
Yes |