2 stocks that will run up soon: oil explorers set to drill

hamilcar54

Newbie
1 0
2 low cost (traditional non-shale) oil plays with enormous upside potential - drilling starts early december !


Terra Nova Energy (TGC ticker on Canadian Venture):

Focused on exploring for and developing low cost, high margin oil in Australia's Cooper Basin.

Short info sheet:

- cost per barrel is 23-28$
- Brent oil now sells for around 50$ a barrel
- the company receives an extra 10%-15% premium above the Brent market price
- to be proven reserves in the upcoming drilling campaign of around 92.7 million barrels of oil
- company owns 20% of the oil properties
- drilling starts in december
- only 6% of the total acreage has been shot with 3d seismic, that leaves still 93% unexplored. Can you imagine what the other 93% might hold if 6% of their acreage already shows a possible 92.7 million barrels !!!

This results in a possible share price of around 6$ when the reserves are proven after the drilling campaign ends (The stock now trades around 0,08$)! Remember, this is only for their explored 6% acreage, the potential upside here is still much higher !

Management did a PP and they themselves raised money for the company earlier this year so they also have a lot of skin in the game !

The company trades on the Canadian Venture exchange but also on the OTC (TNVMF). I would advise to buy on the Venture since volume there is always much higher then on the OTC, the OTC is very thinly traded so it's difficult to get in/out.


Company Share Structure:

87.5 Million Shares
7.4 Million Options
1.9 Million Warrants
= 96.8 Million fully diluted

Drilling news:

http://finance.yahoo.com/news/terra-nova-engages-senex-energy-120000332.html


Holloman Energy (HENC ticker on OTC):

Partner to Terra Nova Energy on it's oil properties, HENC owns around 49% of the properties. Of course the same items in the info sheet as stated above also apply here, the only difference is that HENC owns a bigger cut of the acreage. Management is from Holloman Corporation in Houston and are also the largest shareholders (60 % - Holloman Value Holdings), they also provide all financing and have a lot riding on this.


Company Share Structure:

112.6 million shares fully diluted

This results in a possible share price of around 12$ when the reserves are proven after the drilling campaign ends (The stock now trades around 0,25$) ! Remember, this is only for their explored 6% acreage, the potential upside here is still much higher !
Drilling news:

http://finance.yahoo.com/news/baikal-1-drilling-program-underway-130145803.html

Both stocks have boards on investorshub if you're interested in knowing more about them.
 
 
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