Headwater Exploration Inc T.HWX

Desjardins

[retiredcf]

Desjardins Securities’ Chris MacCulloch bumped his Headwater Exploration Inc. (HWX-T) target to $9.25 from $8 with a “buy” rating. The average is $9.54.

“We have trimmed our 2025 capex assumption to align with updated disclosures, which provides additional dry powder for exploration, asset development, acquisitions and a dividend increase. We expect capital allocation to remain topical as the company begins fine-tuning its 2025 program while gauging the development potential of several exploration plays,” he said.

[Bennys65]

Desjardins in their quarter report suggested that the new exploration plays in the manville will need addional capital in order to develop They can see a high growth spin off coming which would make that possible.

[riski]

Hey Benny, what do you think they mean by high growth spinoff? Are they anticipating a new company to be spun out of HWX for this project? Or are they implying that the Manville play will spin off high growth within HWX once developed?

[Bennys65]

In august of 2023 hwx formed a new ventures group to be heades up by Jon grimwood vp of exploration This group was to focus on the manville group using lycos type drilling who was getting clearwater type results In order to develope any new plays would require a lot of capital and take away from the hwx model So I guess DJ sees them  spinning this off and riding on lcx success raise money in

[pogohere]

Speaking of Lycos,  Dave Burton, CEO of Lycos,  a co-founder at Raging River Exploration Inc.and Wild Stream Exploration Inc., Neil Roszell ventures, describes fishbone and wine rack horizontal well designs, see: "#183: Dave Burton (Lycos Energy) - The Remington Days, Fishbone Wells & Why Horizontal Drilling is Evolving"   fishbone @ min 17:49 and wine rack