VLE.T Valeura Energy
Posted: Saturday Oct 15 10:19:37AM 2016
Bit of a pullback with Turkey drama, but some great news on Thursday. They bought out one of their JV partners and sold the deep rights back to Statoil. A very accretive deal for Valeura, and a huge endorsement from Statoil.
Posted: Tuesday May 17 9:19:21AM 2016
Traded at $1.01 today. Nice turnaround from a low of 60 cents last week. I think this has multibagger potential, although I'm not sure what would be a good entry point at this stage. I think the magnitude of the Statoil agreement would support a $1.10 stock price, although it is not a done deal yet.
Interesting to see that Statoil does not plan to drill a horizontal well but a deep vertical one which they then would frac. Implies they think the overpressurized region is thick enough to exploit with vertical wells.
Posted: Monday May 16 7:40:25AM 2016
Huge news today. Statoil and Valeura announced a farmin agreement on Valeura's property. Millions in development commitments from Statoil, for a 50% stake in the property.
Posted: Thursday May 12 7:25:41AM 2016
Valeura announced disappointing Q1 results today, and mysterious comments about their new tight gas play. They are keeping their tight gas test results confidential as they seek a JV partner for horizontal drilling. IMO, the market is presenting a good buying opportunity at 60 cents.
-going forward company has about 1000 boepd production to generate cash flow to fund growth
-Turkey presents some political risk, compensated by $10 gas prices
-company is going after conventional vertical well gas plays as well as horizontal well gas plays in a previously underexplored part of the world, seeking JV partners on he horizontal wells
-$6.5 million in working capital, no debt
-management team proven in international operations
The following website has a running commentary on Valeura's progress, it presents a reasonable analysis:
Posted: Thursday Apr 14 9:22:32AM 2016
Bobwins first posted about this earlier in 2015. They are a small natural gas E&P company in Turkey. After some production declines they seem to be turning the ship around, with production that they are now operating. They receive very high NG prices in Turkey. Technically, the stock looks like it may be on the verge of a breakout. Need more volume for that though.
There is significant country risk here, but I think it is offset by the high prices they get for gas, and the attractive exploration opportunities. Still worth a look, IMO. I recall Bobwins presented a comparison against another international E&P play which I don't follow.