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Spartan Delta Corp T.SDE

Alternate Symbol(s):  DALXF

Spartan Delta Corp. is a Canada-based energy company. The Company is engaged in exploration, development and production of crude oil and natural gas properties in western Canada. The Company has a portfolio of production and development opportunities in the Deep Basin and the Duvernay. It is focused on the execution of the Company’s organic drilling program in the Deep Basin, delivering operational synergies. It is also focused on growing and developing its Duvernay asset.


TSX:SDE - Post by User

Post by mrmomoon Mar 07, 2023 7:48am
553 Views
Post# 35323081

Reply to Retiredcf's query

Reply to Retiredcf's query"Current thoughts on SDE; where does it rank in your favorites in the sector?"


Well, it depends. Are you asking who's our preferred ep or which one is the best value play? My "Fav" is totally different from the best "bang for the buck" play in the Canadian space. But i'll give you both answers, so you & everyone else on here can decide for themselves.

My "Go To Guy" right now is Kelt. Because not only is it undervalued, but it also has the "great" added potential of being a serious buyout candidate. In addition, oil weighted plays are being given a higher premium than gas leaning eps. And Kelt fits the bill here also, as they have 35% oil mix. 

As for "best value play", I think our newcommer HammerHead takes the prize. Currently trading at about $30K pfb and as an operator which a serrious oily output, it should be a lot higher than the $1,3B value being placed up on it.

For comparisons, Sparta has a valuation of $2.5B (which includes debts of ~$250M, not quite sure where you got the $66M from btw which is incorrect). Sparta will average about 80K boepd this year, with about 20% being oil/condy. HammerHead on the other hand, will average ~40K with not only an oil/condy mix which is double that of Sparta''s but a much higher overall oil output. While i believe BOTH produders are undervalued, HammerHead is trading way way below that mark and should be double where it is currently now. Sparta should technically be about 25% higher than where it is.

The REAL question folks here want answered is the following, "should an investor who's an "interest" in Sparta take a position NOW"? To properly answer that, imho we need to know WHERE Sparta is headed. And to know or have an idea where that is, we need some indication from that "strtegic review" process that's been ongoing for quite some time now. Until that is known, an investor would be foolish to buy in blindly at this time. So my advice would be to take a "wait & see" approach until more is known of the intentiions of mgmt in regards to the direction of the company.



GLTA
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