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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

Comment by Roscoe747on Jul 28, 2023 1:35pm
214 Views
Post# 35561966

RE:Relax people

RE:Relax people

I agree with the sentiment expressed in your title but your analysis is quite optimistic in the short term. 

There is much unnecessary tension on the board over an issue that will, in hindsight be a fhartt in a windstorm. GXE will recover but it will need to execute guidance to confirm to buyers that the rerating is secure. Steady oil pricing above US$80 and FCF on proven PDP of 6kbbl/d with adequate reserves. 

If the bull holds, I can see GXE worth $3+ in a couple of years but the immediate future is harder to predict because the present capital pool is too small in O+G to allow much new capital to filter down to the micros. The biggest variable unaccounted for is the risk appetite of the uncommitted generalist investor for high beta micro cap producers like GXE.

The good news is that should the generalist investor come back, there are not manyproducers left to chose from and GXE has some top metrics. There is renewed appetite for offshore drilling that may spur capital inflows but without capital inflows, all reratings are limited.

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