UIL Energy is a tremendous pick in the oil & gas space as...

UIL Energy is a tremendous pick in the oil & gas space as gleaned below from their recent presentation :

NORTH PERTH – MULTIPLE STACKED PLAYS FOR GAS AND LIQUIDS

• 100% interest in 3 permit applications expected to be granted 2017/2018
• Evidence from nearby wells showing positive gas and liquids potential
• Exploration leads identified

CENTRAL PERTH – CONVENTIONAL AND BASIN CENTRED GAS PLAY

• 100% interest in EP495 (Oceanhill), EP448, EP489 and EP447
• History of gas production. Permits include the Walyering gas field and the Ocean Hill prospect, and are north of the Gingin and Red Gully producing gas and liquids field.
• Exploration leads identified

Perth Basin - Market short on long-term gas ( 20 year profile) - Started with a large number of small players and fractured ownership – UIL has driven the consolidation play - so fewer players with larger acreage positions. - UIL’s strategy is focused on the long term end game; - Strategic holding of key acreage ( now to over 700,000 acres) with intent to grow - Maintaining 100% ownership and operatorship - De-risking projects via 2D/3D for maximum return before drilling capital - - UIL Energy well positioned to take advantage of the acreage squeeze

Perth Basin fundamentals are strong: - a proven commercially productive petroleum system - Supply gap opening with NW Shelf reducing domestic supply (2-3 years) - Strong demand for long term gas supply (e.g. Alcoa and new industry players) - Infrastructure close by for easy commercialisation - Gas demand from new WA projects starting to emerge as the resources sectors begins to see increased investment for the first time in the last 8 years UIL Energy has over 700,000 acres secured in the sought-after Perth Basin – with potential and enough size to interest major players; and – a strategic position that can not be replicated today.


195 million shares on issue - Tight register with Directors and management ownership >25% - A management team who have proven track record in building and monetizing energy projects for shareholders.


My comments : I have been tracking this co for quite some time, the LT charts are in the process of bottoming out - Made an inital buy today for long term hold atleast till 2020 - Expect atleast a ten bagger here over the next three years - if we are lucky and hit big time like AWE , all bets are off, then we are looking at some thing like 50 - 60 Aussie cents. So upside possibilities are tremendous and downside risks are very less. We are being taken care of by an extremely competent and aggressive management at UIL Energy.

Cheers.