This is a little beauty I've been holding before it changed its name from Carpenter Pacific Resources (CPC) to Marion Energy (MAE).
It is a gas explorer and producer with operations in Utah and Texas that is focused on a low risk, aggressive drilling strategy to increase its natural gas reserves and get pipeline hookups to the wells its drilling - most wells drilled are close to existing infrastructure and have reserves that have been proven back from when the gas price made it unfeasible to drill at around the $3/mcf mark. Gas prices at present are around $8/mcf and have been as high as $15/mcf.
Current market capitalisation of ~$130 million, but this is most likely undervalued when you consider Marion's natural gas reserves (1TCF or so I believe), their new 35 well drilling program, - double the planned amount of wells to be drilled this calendar year after they just recently announced they made a placement to a Swedish based investment firm for ~$4 million to fast-track the drilling.
With Marion's natural gas reserves and the name change, it has most likely been done as a corporate clean up - that is, they are inviting a takeover play since they are undervalued when you consider their proven natural gas reserves which are increasing. If they have 1TCF of natural gas reserves, it can easily justify a market capitalisation of $4-600 million giving it a share price of $2-$3.50.
I feel this is a great, low risk play with heaps of upside potential. The last week or two shows that Marion is really going to get the ball rolling now, so hopefully it'll be a slow and steady climb as it drills an average of 3-4 wells a month to produce positive news on flow results, increase their natural gas reserves and an eventual takeover offer made at $2+.
I have attached a .pdf file of a major US company which is taking over smaller private firms at US$3.02/Mcfe for proved reserves and US$2.58/Mcfe of 3P (proved, probable and possible) reserves.. so you can see that 1TCF gas for $4-600 million is a a cheap, conservative estimate...
PS. I hold and as always, DYOR and seek advice off a qualified financial advisor to take into consideration your needs, etc. before doing anything.
It is a gas explorer and producer with operations in Utah and Texas that is focused on a low risk, aggressive drilling strategy to increase its natural gas reserves and get pipeline hookups to the wells its drilling - most wells drilled are close to existing infrastructure and have reserves that have been proven back from when the gas price made it unfeasible to drill at around the $3/mcf mark. Gas prices at present are around $8/mcf and have been as high as $15/mcf.
Current market capitalisation of ~$130 million, but this is most likely undervalued when you consider Marion's natural gas reserves (1TCF or so I believe), their new 35 well drilling program, - double the planned amount of wells to be drilled this calendar year after they just recently announced they made a placement to a Swedish based investment firm for ~$4 million to fast-track the drilling.
With Marion's natural gas reserves and the name change, it has most likely been done as a corporate clean up - that is, they are inviting a takeover play since they are undervalued when you consider their proven natural gas reserves which are increasing. If they have 1TCF of natural gas reserves, it can easily justify a market capitalisation of $4-600 million giving it a share price of $2-$3.50.
I feel this is a great, low risk play with heaps of upside potential. The last week or two shows that Marion is really going to get the ball rolling now, so hopefully it'll be a slow and steady climb as it drills an average of 3-4 wells a month to produce positive news on flow results, increase their natural gas reserves and an eventual takeover offer made at $2+.
I have attached a .pdf file of a major US company which is taking over smaller private firms at US$3.02/Mcfe for proved reserves and US$2.58/Mcfe of 3P (proved, probable and possible) reserves.. so you can see that 1TCF gas for $4-600 million is a a cheap, conservative estimate...
PS. I hold and as always, DYOR and seek advice off a qualified financial advisor to take into consideration your needs, etc. before doing anything.