There has been a lot of talk about the Canning Basin and rightly...

There has been a lot of talk about the Canning Basin and rightly so, but before I discuss that region again I think KEY’s assets 22.5% in EP437 in the Perth Basin is being overlooked. Im not sure of the land area, but looking on the map, KEY has one of the biggest holdings in the Perth Basin with EP437.

Interesting to note that NWE/AWE have the Arrowsmith project just south of EP437 and will be fraccing in June. We all know that NWE/AWE had very good shows on the initial drill so once they frac in June and if they get the oil/gas to flow(I believe they will) I think the Perth Basin will get rerated heavily. Also interesting to note that NWE is trading at around 280 dollars an acre.

Back to Canning Basin and comparisons. NWE and BRU are trading at an EV/acre of 80 dollars. OBL have a fully diluted market cap of 44.6 million. KEY has a market cap of 13.2 million including 2 million in cash and has roughly 3 times the acreage of OBL in the Canning Basin.

If you look at the latest Pattersons research report is states that recent farmmout transactions for shale gas in the Perth Basin were at about 17 dollars per acre and these deals were done prior to the Canning becoming the hot property it is now.

So with KEY trading at an EV/per acre of about $3.40, it just highlights how cheap KEY is IMO

Interested to hear others thoughts especially on Perth Basin and EP437

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