GTE
Re: GTE
We are going to publish a profile on GTE this month. I really like this company, which is heavily weighted to oil. They are developing several major oilfields in South America. My Fair Value Estimate is now over $11/share.
It is a former Sweet 16 company, which I have been tracking for years. It is HEAVILY weighted to oil. Current production is over 23,000 boepd (97% crude oil that sells at about $5 below Brent).
Here is a good article:
http://seekingalpha.com/article/1655522 ... urce=yahoo
It is a former Sweet 16 company, which I have been tracking for years. It is HEAVILY weighted to oil. Current production is over 23,000 boepd (97% crude oil that sells at about $5 below Brent).
Here is a good article:
http://seekingalpha.com/article/1655522 ... urce=yahoo
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: GTE
Gran Tierra Energy, Inc. (GTE): An updated Net Income & Cash Flow Forecast model has been posted under the Watch List Tab.
Fair Value Estimate has been raised to $11.00/share. This compares to First Call's Price Target of $8.80/share.
My valuation was increased primarily due to their increased production guidance. There is SIGNIFICANT upside potential to my valuation.
> I now believe GTE's full year 2013 production will exceed the high end of their guidance.
> The Moqueta Field may be much larger than previous estimates. They have drilled 11 wells and they still have not found the oil / water contact.
> In Peru, GTE successfully tested the horizontal sidetrack of the Bretaña Norte 95-2-1XD exploration well in Block 95 at 3,095 BOPD. A 382 kilometer ("km") 2D seismic acquisition program has been initiated to provide a more detailed map of the Bretaña structure and an independent exploration prospect to the south of the Bretaña structure. I believe this is a major discovery that is not reflected in the share price.
> Horizontal development drilling in Argentina has the potential to significantly increase production in 2014.
> Any success in Brazil will send this stock much higher.
GTE is virtually debt free (cash in the bank exceeds total debt) and they generate strong cash flow from operations. Their oil sells at $5/bbl below Brent and their natural gas sells for approximately $4.50US/mcf.
We will publish a detailed profile on GTE this month. To get a head start, go to their website and see their corporate presentation.
Fair Value Estimate has been raised to $11.00/share. This compares to First Call's Price Target of $8.80/share.
My valuation was increased primarily due to their increased production guidance. There is SIGNIFICANT upside potential to my valuation.
> I now believe GTE's full year 2013 production will exceed the high end of their guidance.
> The Moqueta Field may be much larger than previous estimates. They have drilled 11 wells and they still have not found the oil / water contact.
> In Peru, GTE successfully tested the horizontal sidetrack of the Bretaña Norte 95-2-1XD exploration well in Block 95 at 3,095 BOPD. A 382 kilometer ("km") 2D seismic acquisition program has been initiated to provide a more detailed map of the Bretaña structure and an independent exploration prospect to the south of the Bretaña structure. I believe this is a major discovery that is not reflected in the share price.
> Horizontal development drilling in Argentina has the potential to significantly increase production in 2014.
> Any success in Brazil will send this stock much higher.
GTE is virtually debt free (cash in the bank exceeds total debt) and they generate strong cash flow from operations. Their oil sells at $5/bbl below Brent and their natural gas sells for approximately $4.50US/mcf.
We will publish a detailed profile on GTE this month. To get a head start, go to their website and see their corporate presentation.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: GTE
Our top intern at SMU has finished his work on the GTE profile. I will finish it up on Tuesday and send it out in a Flash Alert.
I realize that many of you are afraid of investing in South America, but GTE is based in Canada and they have a top shelf team. I think this one has a lot of upside for us, for the reasons highlighted above.
I realize that many of you are afraid of investing in South America, but GTE is based in Canada and they have a top shelf team. I think this one has a lot of upside for us, for the reasons highlighted above.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group