1. Most Discussed
  2. Gainers & Losers
COE 31.0¢

Cooper Energy Dream Run

  1. Beach Petroleum announced this afternoon that the Sellicks-1 well in the Cooper Basin tested 1780 barrels of oil per day with no water. A great result.

    Cooper Energy are 25% participants in this discovery. On today's close they have a market capitalization of $7.98 mm, way smaller than Beach's, and therefore offer much greater leverage.

    Cooper Energy listed about 4 months ago after an oversubscribed IPO. This discovery is their first significant investment so they would still have most of their nest egg. What a dream run...yet the stock is still trading below the 20c issue price.

    I spoke to Tony Wright, their exploration and production director this afternoon. He believes it will be possible to place the well on production within three months. By my estimation this alone will yield $3mm - $5mm net to Cooper Energy in the first year of production. He is also excited about the potential for further wells on the Sellicks structure as well as a series of similar prospects nearby.

    The stock closed at 15.5 cents, up from 13 cents prior to the announcement. I bought some shortly after the announcement at what I consider to be an absolute bargain basement price.

DISCLAIMER:
Before making any financial decisions based on what you read, always consult an advisor or expert.

The HotCopper website is operated by Report Card Pty Ltd. Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, you should before acting on the information or advice, consider the appropriateness of the information or advice in relation to your objectives, financial situation or needs. Please be aware that any information posted on this site should not be considered to be financial product advice.

From time to time comments aimed at manipulating other investors may appear on these forums. Posters may post overly optimistic or pessimistic comments on particular stocks, in an attempt to influence other investors. It is not possible for management to moderate all posts so some misleading and inaccurate posts may still appear on these forums. If you do have serious concerns with a post or posts you should report a Terms of Use Violation (TOU) on the link above. Unless specifically stated persons posting on this site are NOT investment advisors and do NOT hold the necessary licence, or have any formal training, to give investment advice.

Top