Investment IdeasNow that we have our L-53 distribution on the way, what investments are you considering and why? Companies I am looking at are;
ECO Atlantic Oil & Gas (V:EOG $0.53) Rig mobilization is underway and will arrive at Gazania-1 and is expected to spud by the end of September. Well drilling to take approximately 25 days and is located in the South Africa section of the Orange Basin.
- Shell drilled Namibia's section of the Orange basin and discovered what they believe is 600 million barrels discovery. New estimates are now around 3 billion barrels.
- Total Energies drilled Venus in Namibia's section of the Orange basin as well. Venus initial size was speculated to be 2-3 billion barrels. That has since been increased to as much as 13 billion barrels. If this ends up being the case it wall be bigger than Exxon's Liza discovery off the coast of Guyana.
Gazania is in the neighbourhood of the Shell and Total discoveries. ECO might be worth a bet based on Gazania's geographical location. Bet on closeology. ECO also have other interesting prospects in their portfolio. Visit their website if intersted in knowing more.
Africa Oil Corp (V:AOI $2.61) I purchased my first shares with our last distribution $0.40 @ $2.19 per sh. and am considering purchasing more. The companies claim to fame were South Lockichar discoveries in Kenya. These dicoveries were over a decade ago and have not been developed as yet. Africa Oil sold down their position to hold 25% interest. Money raised from the Kenya asset sale was used to buy a stake in Prime which entitles them to dividends reveived by Prime for two Nigeria offshore oil fields managed by Total and Chevron. AOI has ownership interest in Prime, EOG, and Impact giving them exposure to a number of other O&G prospects. Africa Oil has $191 million in cash and no debt. Too much to write about here. Visit their website if interested in knowing more.
Athabaska Oil (T:ATH $2.62) For me, this is the one that got away. I debated about buying Africa Oil or Athabaska with my last POE $0.40 distribution. Then ATH was trading at $1.20 and Africa Oil at $2.19. Hindsight being 20/20 I should have bought an equal dollar amount in both. Instead I guessed which one would go up first and by the most. That was a mistake. Live and learn. Athabaska is busy paying off its debt and expects to be in a net cash position by early 2023. Share buybacks and a possible dividend could be on the horizon. What I could have had at $1.20 still interests me at $2.62. Do your own DD.
Energy Transfer (NYSE:ET $12.14 U.S.) There is a lot to this company so I will use the Stockhouse discription to discribe what it is they do. Think of Enbridge with a fatter dividend!
Energy Transfer owns a large platform of crude oil, natural gas, and natural gas liquid assets primarily in Texas and the U.S. midcontinent region. It also has gathering and processing facilities, one of the largest fractionation facilities in the U.S., and fuel distribution. Energy Transfer also owns the Lake Charles gas liquefaction facility. It combined its publicly traded limited and general partnerships in October 2018. Been kicking the tires on this one since March 2022 which then traded at $8.00 with a 15.5 cents dividend per Q or 62 cents annually. Like all oil and gas businesses, ET business prospects have improved as well. Management stated they would like to see the dividend get back to what it used to be which was $1.22. They are doing exactly what they said they would do. Raise the dividend which is currently $0.23 cents per Q or $0.92 per annum. Not a bad increase over the past six months! Yield is now 7.58% The one thing I have learned from owning Pan Orient for over 10 years is I would now prefer getting paid while I wait for a company business plan to grow.
Will likely not reinvest all of the L-53 distribution back into oil and gas companies. With raising interest rates, dividend yields have now become interesting and will focus on a getting paid while I wait investments. I will no longer remain a buy and hold investor. Low trading commissions and sell at the click of a button create oversold valuations that take time to recoup ones investmant. Will be sitting on the cash and wait for what I think will be a good entry point. Not expecting blood on the streets situation. More like lower lows in the near term. Happy Hunting.