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Gear Energy Ltd T.GXE

Alternate Symbol(s):  GENGF

Gear Energy Ltd. is an oil-focused exploration and production company. The Company carries on the business of acquiring, developing and holding interests in petroleum and natural gas properties and assets. Its operations are located in three core areas: Lloydminster Heavy Oil, Central Alberta Light/Medium Oil and Southeast Saskatchewan. The Company is also engaged in focused on improving oil recoveries through the application of water flood technology. The key properties in the Central Alberta Light asset include Wilson Creek, Ferrier, Killam, Drayton Valley, and Chigwell.


TSX:GXE - Post by User

Post by InsideEnergyon Oct 14, 2021 11:51am
376 Views
Post# 34005360

small oilers are rare today

small oilers are rare todaythere is not much to compare this one with.  Facts show what they own is a bunch of small wells across two big provinces.  They had a near death experience in '15 when oil tanked.  the rise in oil prics from $20 to $75 has certainly saved this company.  Now though can they grow and where?  they bought stryker years back to get into light oil in the Wilson Creek Cardium play.  did not go so good.  they then bought The Tableand Torquay play, it looked so good I guess.  They bought 1500 bopd and have since drilled a dozen wells, not cheap either, horiz multi stage, they looked at be 300 bopd producers, a nice step from their less than 100 bopd wells they live on.  But that acquisition too is making me think here as production hit 2000 after first drilling program in Tableland but has since dropped a lot, to 1500 after spending two years drilling a dozen wells at about $60 mill.. anyway, the last release told us they drilled a 2 mile horizontal there.  they said they would update us, have not seen yet. I tell ya if Tableland is weak, then they just add to rather poor assets spread all over, the exact oppsite of what I want to see.

now nothing wrong with a longer well, but it does eat into your future locations, that is not an issue really unless it shows they want to up the flow at tableland.  the wells should be cash cows at 300IP30 but the lack of production adds after all that drilling there makes me wonder, is it just another lousy acquistion?   I strongly suspect those wells are coming off flush real hard and not the long life asset they said it would be when they bought it at a pretty big dilution to shareholders as was the stryker buy.  Lots os shares out now, a qtr billion making this a qtr billion dollar market cap, that is inflation I guess as it it way too much to pay for what this is, but it is a kinda rare breed being oil and small.  most production in the basin is natgas and most oil is not from wells but truck and shovel at Fort Mac.


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