Malcolm Shaw Hydra Capital May 27 / ExcerptIn other “deal news”, about a month ago, little Valeura Energy (VLE.TO, last at $0.52) finally found something new to focus its attention (and cash) on — an offshore oil asset package in Thailand. VLE scooped the assets from KrisEnergy for around US$10 million assuming that all development milestones are met ($3 million was paid up front). VLE also needs to pony up US$9.2 million over 14 months for a MOPU (mobile offshore production unit) that is on site at the Wassana oil field. Total 2P reserves associated with the deal are around 4 million barrels of oil, with some 13 million barrels of exploration upside in near-field targets, including 5 million barrels in the discovered, but as yet developed, Rossukon oil field. I would encourage interested parties to peruse the presentation on the VLE website on this one. In it, VLE shows that it hopes to have ~3,000 bopd on stream by the end of this year and shows a ~4,500 bopd target in 2023. On those kinds of numbers, it seems to me like VLE should have a pretty clear path to a $100 million market cap, which would mean a share price somewhere in the $1.25 range, (give or take) without too much imagination. That’s assuming that all goes according to plan, and I’d expect VLE will have regular updates on its progress this year, which means investors will know if it is delivering as promised. If VLE hits its signposts on time, shareholders should do well. The company says that its initial 3000 bopd production restart will yield US$9 million in cash flow every quarter. That would seem to be pretty sweet in light of the all-in purchase price of around US$20 million, so here’s hoping. VLE will still have around US$20 million in cash post-deal, so it is well equipped for either further acquisitions, or any unexpected costs, or perhaps both.