Our Canadian Juniors have HUGE upside for us - June 9

Our Canadian Juniors have HUGE upside for us - June 9

Postby dan_s » Wed Jun 09, 2021 11:47 am

Things are looking up in Canada. I have two Canadian Junior Upstream Companies in our Small-Cap Growth Portfolio that have a good shot at being triples for us if WTI oil stays over $65/share. My valuations below are based on assumptions that now look very conservative.

Hemisphere Energy (HMENF) is currently trading at $0.50US, which compares to my valuation of $1.35US.

InPlay Oil (IPOOF) is currently trading at $0.68US, which compares to my valuation of $1.40US.

I consider Hemisphere to be the safer of the two because they are on-track to be debt free within a year. Hemisphere has started work on converting one of their waterfloods at Atlee Buffalo to a polymer flood. If the Company gets the results that they are expecting, my valuation will go over $2.00US. Don Simmons should be able to give us an update on the polymer flood when they release Q2 results in August. Hemisphere's Q1 production of 1,653 BOE per day (99% oil) should ramp up to 2,200 by year-end and increase to 4,000 BOPD by the end of 2022 if the polymer flood works.

InPlay has more current production (over 5,000 BOE per day), but it has more debt to deal with. InPlay has HUGE UPSIDE in the Duvernay Shale Play in Alberta. If oil stays over $70Cdn/bbl, InPlay's leasehold position in the Duvernay could have a market value of twice the company's current market cap.

You can find profiles on both companies under the Small-Cap tab on the EPG website.
Dan Steffens
Energy Prospectus Group
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Re: Our Canadian Juniors have HUGE upside for us - June 9

Postby dan_s » Wed Jun 09, 2021 11:48 am

As oil hits $70, new forecast shows Alberta's economy primed to lead Canada in growth . Financial Post . Welcome back to a world of US$70 oil. It’s been more than two years since benchmark U.S. oil prices were at such a lofty level and they briefly returned to that mark on Monday, bolstering expectations of a revival for the Canadian oil sector in the second half of this year and into 2022. Higher energy prices are also expected to help jumpstart an economic recovery in Alberta, as a new Conference Board of Canada report projects the province will lead the country in growth this year and next.

Canada’s major oil sands producers unite to achieve net zero 2050 carbon emission goals . WorldOil . Canadian Natural Resources, Cenovus Energy, Imperial, MEG Energy and Suncor Energy formally announced the Oil Sands Pathways to Net Zero initiative. These companies operate approximately 90% of Canada’s oil sands production. The goal of this unique alliance, working collectively with the federal and Alberta governments, is to achieve net zero greenhouse gas (GHG) emissions from oil sands operations by 2050 to help Canada meet its climate goals, including its Paris Agreement commitments and 2050 net zero aspirations.

Canadian public opinion poll shows strong support for offshore oil and gas projects . WorldOil . Noia recently engaged a public opinion firm to survey Newfoundlanders and Labradorians about their support for the offshore oil and gas industry, and the Terra Nova Project specifically. Not surprisingly to Noia, the vast majority of respondents support the industry and efforts to ensure the Terra Nova Project undergoes the Asset Life Extension project and continues to operate offshore, even if that requires the Government of Newfoundland and Labrador purchasing an equity stake.

W. Brett Wilson: Environmental groups have no right to bury the truth on oil and gas . National Post . Opinion. As someone who’s helped finance Canadian energy businesses throughout most of my career, I couldn’t stand idly by and watch Ecojustice, an environmental charity, seek to pre-emptively shut down Alberta’s public inquiry into allegations of foreign funding of anti-energy campaigns. In July 2019, the Alberta government appointed Steve Allan, a respected forensic accountant and community leader from Calgary, to lead an inquiry to ascertain “the facts about foreign funding of anti-Alberta energy campaigns.”
Dan Steffens
Energy Prospectus Group
dan_s
 
Posts: 25564
Joined: Fri Apr 23, 2010 8:22 am


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