Opinions
Josef Schachter
Return Energy Inc
RTN-X
COMMENT
Dec 05, 2012
Stock price when the opinion was issued
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This is a rank exploration wildcat. It’s always good to have one of these in your quiver. Has been at this particular project for about 5 years. The best news is that they are about to drill their 1st exploratory well on an onshore block in Tunisia. Feels political risks are probably pretty low now. No bank debt. A couple of million dollars a year in cash flow from a gas property they have in Hungary.
Announced they will be testing a well in the key area for the Abiod in Tunisia. Will be testing 3 zones, so are quite confident they are going to have something. If they find 500-1000 barrels, the stock has done quite well. Likes the company and has a target of $0.55. Information will be known in early December.
Will be drilling in Q1, hopefully February. This is a very big prize, could be 50-60 million barrels. Going to do another seismic program to define opportunities. Market has been waiting for them to start drilling.