RE:Thoughts on TXP from a wet and windy Saturday EnglandThink you meant $ 3 by Spring of 2021 and $ 10 by Spring of 2022 and I agree.
What I'm wonering is what are we going to do with the rig we are using now, do we know ?
I think we know that we have another rig booked for Royston that can drill to 12000 ' but what about this rig and where do we go next.
We've been told that we will go back to our oily properties on the Western side of the island and continue developing those but I don't think we've been told what's happening after Cascadura Deep, are we going back to Chinook and drill a development well, and try to go deeper this time to see what's down there ?
Any ideas ?
Thanks
Davidblackgreen wrote: A year ago “The brave and the smart” were here investing and have made a “Bucket Load of Cash."
They backed a bold play that had a decent probability of playing out but no more. Its was high risk certainly and required lots of due diligence to get involved.
Today the world has moved on with the stock up eight or ten times since pre Coho.
Where investors are today is very different, they still have massive upside leverage but it’s no longer an “Easy Ten Bagger” of a year ago. But its still huge, however maybe over a slightly longer timescale to drill those twenty targets!
Just for the record “Easy” seems to be the most difficult task in the stock market either side of the Atlantic!
The difference and huge in your face upside now though is the discoveries at Coho, Cascadura 1, Chinook; plus maybe Cascadura Deep and if we are very lucky that connecting zone linking Chinook and Cascadura? That last one is a big maybe!
All those zones are currently known hydrocarbon bearing rocks and the first three are serious TXP discoveries but as yet none are fully priced in.
In the case of Chinook barely priced in at all!
So today there is a value play here in the existing discoveries with huge and slightly derisked blue sky. That's as rare as "A balanced Federal budget!"
So is the discount to fair value 10% or 90%? That's the big question.
Who knows but Malcolm Shaw’s table lays the possibilities out nicely, so please add your own numbers!
HTTPS://www.hydracapital.ca/2020/05/11/fun-with-touchstone-numbers/
Whatever that answer is the word seems hugely undervalued against today’s price which is why Milton just wrote a $20m cheque to buy 7%.
So is this $3 in the spring 2021 or $10 in spring 2020?
The mad thing is those are serious likelihood.