Headwater Exploration Inc T.HWX

Alternate Symbol(s): CDDRF

Energy Oil & Gas E&P

Headwater Exploration Inc. is a Canadian resource company engaged in the exploration for and development and production of petroleum and natural gas in Canada. The Company has heavy oil production and reserves in the Clearwater/Falher formations in the Marten Hills, Greater Nipisi and Greater Peavine areas of Alberta and natural gas production and reserves in the McCully field near Sussex, New Brunswick. The McCully Field is located approximately 10 kilometers (kms) northeast of Sussex, New Brunswick in the farming community of Penobsquis. It owns and operates a natural gas processing plant, with a processing capacity of approximately 35 mmscfpd, and a 50 km transmission line connected to the Maritimes and Northeast pipeline. The McCully Field is a winter producing asset connected to the northeast United States gas market. The Company drilled its first stratigraphic test and single-leg horizontal well, prospective for heavy oil, in Handel, Saskatchewan.

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Headwater Exploration Inc

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Post by retiredcfon Feb 09, 2024 9:02am

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Post# 35871963

RBC

February 8, 2024

Headwater Exploration Inc.
Unveiling a new position in the Mannville

TSX: HWX | CAD 6.29 | Sector Perform | Price Target CAD 8.00

Sentiment: Neutral

Headwater unveiled a previously discussed new play in conjunction with two new well licenses. The latest presentation highlights ~55 sections in the fairway, sitting northeast of Strathcona Resources' Druid asset and west of Cardinal's recent Reford SAGD project in Saskatchewan. Headwater previously noted that the company added 155 net sections of land in non-Clearwater oil fairways, with the 2024 exploration budget including four wells focused on non-Clearwater opportunities. The updated slide highlights two Q1/24 tests at Handel during Q1, though results are unlikely to be included with Q4/23 earnings (expected on March 7, 2024, after markets close). Overall, we view this update constructively with the company pursuing new exploration opportunities to further scale the business and add to inventory, though we note the play is exploratory in nature and carries a higher risk profile; please see our recent Mannville Resurgence note for more details on the broader play and Exhibit 1 for more details.