EPR has highly rated acreage in the Otway Basin .... still has a lot of cash and an active drilling program planned.
It's first two wells were dusters but that could change very quickly with any future drilling success. Santos is one of the majors that will be undertaking an active drilling programme in the Otway Basin - and this is a positive for EPR.
The stock seems to have bottomed at current prices - and should run up past 20 c once news of impending drilling is released.
This is an extract from an article in Shares Magazine earlier this year:
"EPR's biggest drawcard is the Cobboboonee prospect in the 100 per cent-owned PEP 151 permit. It is a 40 million barrel oil target.
An expected drilling cost of $1 million compares to a potential valuation of $500 million if - and that's still a big IF - oil is found. This equates to more than $5 per EPR share."
This well is to be drilled in the fourth quarter of this year and, if there is a sniff of oil the shares will skyrocket.
It is a big "if" however .... a lot of smart money will move into the stock at below 20 c and will bail out at profit before drilling outcomes are known. That's a fairly safe way to play this stock.
Or you could gamble and hope for the jacpot -- $5.00 a share from current levels would be phenomonal, unlikely but not impossible.
I have some EPR tucked away --- my "casino chip" play.
Good luck on this one.
Cheers.
EPR Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
