Exciting Things Martin Hills - ClearwaterThis Land Map shows where POU is in Martin Hills ( Cavalier Land is their land company)
Lank Map Martin Hills Economics of Baytex wells Clearwater
Clear Water Baytex wells payout So Baytex drilled 18 wells in 18 months, and had production of 9100 boe a day in June 2022. These wells payout at 85 dollar WTI in 5 months. (Free Cash Flow)
So POU is in the heart of the play, next to the very best wells, and they have been mapping this out for a few years now. Wells costing 1.7 million, i expect it would not be a big deal for POU to drill 25 wells 40 million dollars and bring on an extra 10,000 boe/day. (Puttin some value on the clearwater assets)
What needs to get resolved is POU likely has 2 billion of value here (Martin Hills) that is not being reflected on the balance sheet and not reflected in the share price.
2 billion / 142 million shares = 14 dollars a share.
POU when is starts getting results from martin hills will likely take a big bump, and think about it, its not a separate company with a ton of overhead, it a tuck in no play area for POU.
POU is simply to cheap, and should be at least 40 dollars if not higher, they have growth opportunities hanging from the vines. Nuttal while talking about Baytex and their great clear water results, when asked about POU he said they were are $60 stock. He said POU is in the clear water and they have been sniffing around fro a long time, and JR just keeps pulling these plays out of thin air that nobody knows about, that POU owns.
My price analysis on the POU share price is this, it is 50% discounted to NVA, that is the starting point. 28 + 14 = 42
$42 dollars, + North Duvernay($10) + Wilesden Green($14) + Clear Water($14) + Smokey($2) + Karr($3) (10K bump) that 75 dollars a share but that is only getting started.
Wapiti will likely get a bump in the development plan as the latest wells off the charts.
Expect a fantastic Q3 quarter for POU
IMHO