Value Microcaps Junior Energy

[dr_airtime]

CNE.TO - time to buy old favourite...

...attended the Keith Schaefer O&G subscriber summit today. Canacol CFO presented for 10 mins. New pipeline capacity slates to be commissioned on Dec 1, 2017. This shohld be a catalyst for a 30-50% share price run IMO. After that there is another 90MMCFD slated to come on through a third pipeline expansion in 2019. When this is complete Canacol will generate USD 300M/year in EBITDA. EV is 840M if I remember from presentation. Debt will be reduced. 2-3 year double potential from here IMO. Not a micrcap anymore but I don't aee anyone else posting!!

- 90MMcFD pipeline capacity currently, wells can do 200MMCFD
- Chevron historical coastal gas discoveries dropping from 477 mmcfd in 2015 to 250mmcfd in 2020
- 2TCF of unrisked exploration resources - Gaffney Cline
- $4/Bbl netback
- Gas has only a 10% decline rate. Only need to drill 2 wells/year @ US 7.5M/well to offset decline