1) Oil Leases: The Company holds a 100% working interest in two proposed oil locations producing out of the Cardium and Viking formations. The Sylvan Lake, Alberta property is located near the town of Sylvan Lake, Alberta in townships 36 and 39, Ranges 1 and 3 W5M. Kaymus currently has no wells drilled in the Sylvan Lake Area
- Not sure if anyone is good with maps, but I would be curious to know what wells are currently producing from those formations around our lease. Cardium and Viking formations are well known for good production. The company could easily sell off its investments and drill a well today, or even raise some funds to drill both.
2) GORR's (Royalty Holdings): The Company also holds overriding royalty interests ranging from 10% to 13% on five sections of land, on which are currently five producing wells which the Company acquired on January 15, 2019.
- This is 3,200 acres of land. Given that only five wells are producing, odds are there are likely many more locations to drill on this property. Having 10-13% GORR's is huge when you consider that the industry average rates are usually between 2-3% when you look at junior public companies.
3) Investments: As at January 31, 2022, the Company had working capital of $1,439,257 compared to working capital of $814,778 at July 31, 2021. The increase in working capital is a result of an increase in the value of the investments.
- Very likely that the investments held by Kaymus (unless they were sold in Q3 2022) have gone up in value. Average pricing for oil at the end of January was much lower than today. This is reflected when you look at almost any oil equities. Specifically large caps, which is probably what the board invested in.
4) Outlook: The Company plans to accumulate prospective land in the WCSB and will execute a drilling program when capital markets allow for raising equity.
- The company could be accumulating additional leases this year and plan for a raise, which can bring additional upside potential. Many other micro/small cap stocks are fine with 300-1000 barrels per day. But given the background of the board and the $300 million market cap company they already run (Yangarra Resources), there's a good chance they'll try and acquire some great leases for Kaymus. Raising funds to drill wouldn't be difficult for these directors, given their background in the petroleum industry.
Additional oil/gas reserve + drilling information is available on Sedar.